2020 GLOBAL CITIZENSHIP REPORT | 1 Our Company

2020 Global Citizenship Table of Contents

Our Company 2 Recycling and Beyond 53 From our Chairman and CEO 3 Our Commitment to Circularity 54 Message from Our Chief Sustainability Officer 4 Natural Resource Stewardship 55 COVID-19 Response 5 Recycling 55 Vision 2020 Goals 6 Circular Economy 57 Vision 2030 Goals 7 Our Businesses 8 Responsible Business Practices 59 Our Operations 9 Our People 61 Our Communities 70 Our Sustainability Strategy 10 Governance 73 Sustainability Throughout Our Value Chain 12 Global Ethics and Compliance 76 Alignment with the UN Sustainable Government Relations 79 Development Goals 12 Stakeholder Engagement 15 Appendix 81 Engagement Method by Stakeholder 81 Sustaining Forests 17 Materiality Assessment 85 Forest Stewardship Strategy 19 Material Issues 85 Responsible Fiber Procurement Policy 20 2020 Diversity of Governance Bodies 86 Fiber Certification 23 Employee Diversity 86 External Collaborations 25 Giving Structure and Governance 87 External Initiatives 88 Sustainable Supply Chain 27 Associations Membership 90 Responsible Sourcing Strategy 29 Sourcing Sustainably 31 Glossary 93 Risk Management Approach 31 Fiber Supply 32 GRI Content Index 97 Transportation 33 Supplier Social and Environmental Impact 33

Manufacturing Responsibly 35 Sustainable Manufacturing Strategy 37 About this Publication Energy Efficiency 38 This report has been prepared in accordance with the Emissions Reduction Strategy 39 Global Reporting Initiative (GRI) Standards: Core option. GRI is a universally applicable, comparable framework GHG Emissions Reductions 40 that facilitates transparency and accuracy.

NOX, SO2 and Other Air Emissions Reductions 42 Water Stewardship 43 Unless otherwise indicated, information is from the 2020 calendar year, and data are accurate as of Water Quality 45 December 31, 2020. Solid Waste 46 Fiber Efficiency 47 View our other reports at InternationalPaper.com/reports. Sustainability at International Paper encompasses our entire value chain. This report is organized around the Innovative, Renewable Products 48 key impact points along our value chain. Creating Renewable Solutions 50 Designing for the Circular Economy 50 Research and Development 51 About the cover: International Paper is committed to the Product Stewardship 52 stewardship of our natural resources, and we’re improving our Our Products 52 climate impact by reducing our greenhouse gas emissions by 35% as part of our Vision 2030.

Our vision is to be among the most successful, sustainable and responsible companies in the world.

WHO WE ARE CORE VALUES We are one of the world’s leading producers of renewable, fiber-based packaging, pulp and paper. Above all, we care about people. We look out for each Safety other to ensure everyone returns home safely. WHAT WE DO Our mission is to improve people’s lives, the planet and our company’s performance by transforming renewable resources into products We act honestly and operate with integrity and respect. people depend on every day. Ethics We promote a culture of openness and accountability.

HOW WE DO IT We are responsible stewards We do the right things, in the right ways, for the of people and communities, right reasons, all of the time — this is The IP Way. natural resources and capital. Stewardship Together, The IP Way and our core values of We strive to leave everything safety, ethics and stewardship serve as our in better shape for future guideposts as we carry out our mission. generations.

$21 Billion net sales More than $23 Million in 2020 invested in 2020 to address critical needs in the communities where Approximately 48,000 we live and work global employees Every International Paper job supports 3.25 jobs More than 25,000 in industries and customers in 150 countries local communities

2020 GLOBAL CITIZENSHIP REPORT | 2 From our Chairman and CEO In 2020, the COVID-19 pandemic forced us to work in different ways, but it also strengthened our sense of responsibility and pride in manufacturing essential, sustainable products that people depend on every day. The pandemic heightened our understanding of the connection between environmental stewardship, social Mark S. Sutton Chairman of the Board and equity and resilience. And while challenging on many levels, Chief Executive Officer 2020 gave us an opportunity to truly live up to our core values of Safety, Ethics and Stewardship.

Operating our facilities to take care of customers starts with our employees showing up and working safely — and they did just that, every day, throughout the pandemic. As an integral part of the supply chains of essential products around the world, our global INVESTING IN teams were the heroes behind the frontline heroes ensuring consumers had access to PEOPLE DURING the products they needed. I am incredibly proud of and grateful for their resilience and COVID-19 their ongoing commitment to our customers, our communities and each other.

We continued to meet the needs of our communities head on. As food banks around the Implemented new safety world began to see increased demand for food assistance, we responded with a measures to keep donation of two million corrugated boxes to enable the safe and efficient distribution of essential workers food. Our global teams stepped up to meet critical community needs: From corrugated at our facilities safe. dividers supporting social distancing to feminine hygiene products and other fiber-based hygiene products for hospitals, when our teams saw a need, they responded.

As a company, we amplified our diversity and inclusion efforts. Each of our businesses Donated two million and staff groups have developed diversity and inclusion plans to increase women and corrugated boxes to food minority representation. Additionally, we launched our first four Employee Networking banks across the world. Circles (ENCs), whose missions include attracting, developing, promoting, retaining and giving a voice to their members: LGBTQ+ identified individuals and allies, veterans of the armed forces, African-Americans and women. Donated more than We made measurable improvements to close out our Vision 2020 sustainability goals, 300,000 other products and I am pleased with the progress we made throughout the past decade. Our progress including paper, on these goals helped us address the expectations of our customers and our paper bags, paper rolls communities, become a better company and recognize that there is more we must do. and feminine hygiene products. Last year we introduced Vision 2030, four goals that demonstrate our commitment to building a better future for people, the planet and our company. Each of the following Vision 2030 goals includes robust targets to drive sustainable outcomes for people and communities, the environment and our customers: Employees provided 11,000 socially distant • Healthy and Abundant Forests volunteer hours to • Thriving People and Communities support communities. • Sustainable Operations • Renewable Solutions

2020 GLOBAL CITIZENSHIP REPORT | 3 Vision 2030 demonstrates that we are thinking differently about how we use natural resources and our impact on the environment. It underlines our desire to drive real “While challenging on progress in the circular economy. We are also increasing our focus on people, many levels, 2020 gave us including those who work for us and others in our communities. Through these an opportunity to truly goals, I am confident we will enable sustainable outcomes in our communities and in our workplace over the course of the next decade. live up to our core values of Safety, Ethics I am energized by the challenging work ahead of us, and I look forward to reporting our first year of our Vision 2030 progress in next year’s report. and Stewardship.” Mark S. Sutton, Chairman of the Board and Chief Executive Officer Mark S. Sutton Chairman of the Board and Chief Executive Officer, International Paper

Message from our Chief Sustainability Officer The intersection of natural resources, human health and our climate has never been more pronounced.

As such, we have set ambitious forest stewardship targets for the next decade that recognize and respond to the environmental, social and economic benefits forests provide — not least of which is their magnificent ability to capture carbon from the atmosphere. Partnerships with organizations such as World Wildlife Fund and The Nature Conservancy are enabling us to make meaningful contributions to the advancement of science-based targets for forests, natural climate solutions and watershed protection.

In the development of our Vision 2030 goals, we recognized that managing climate- related risks is critical throughout our value chain to advance a low-carbon economy and Sophie Beckham to remain within our planet’s natural boundaries. That’s why our greenhouse gas (GHG) Chief Sustainability Officer targets are aligned with the best available climate science. And it’s why we are aiming to advance circular solutions throughout our value chain to ensure that all of our products are 100% reusable, recyclable or compostable by 2030.

People are at the heart of all we do. As we embark on the next decade, we have increased our focus on our people and communities. We invite you to join us in driving community resilience, diversity, inclusion and safety among our workforce, workplace and marketplace.

Sophie Beckham Chief Sustainability Officer

2020 GLOBAL CITIZENSHIP REPORT | 4 COVID-19 Response: Preserving an Essential Industry During a Global Pandemic

During the COVID-19 pandemic, International Paper was prepared to meet the unique challenges the pandemic presented.

Supply and Demand Met: Forest products are a necessary component of the supply chains required to produce and deliver food, pharmaceuticals, health and hygiene products, and emergency supplies to consumers and communities around the world. Our world-class global sourcing teams never slowed down as they helped keep essential supply chains moving globally.

Safe and Proud Workforce: During the COVID-19 pandemic, we applied new layers of protection to ensure our essential workers stayed safe and healthy while at work. When workers needed to quarantine, we ensured they continued to receive their pay. Also, in recognition and appreciation of the outstanding efforts, agility and resiliency that kept our operations running safely during the pandemic, all employees received a one-time bonus payment in December.

We express how proud we are of the accomplishments our global workforce – our Everyday Heroes Behind the Everyday Heroes – undertook during the pandemic. Plus, view the pride our employees take in the essential work they do at #ProudtoBeIP.

2 Million Boxes: Food banks around the BY THE NUMBERS world experienced dramatic increases From Mexico to Russia, our facilities in demand for food assistance driven responded to their local communities with by the economic impact of the donations, including the essential products COVID-19 pandemic. International we make. A quick look at the numbers reveals the magnitude of our team Paper responded with a commitment members’ support to date: to donate two million corrugated boxes to hunger-relief organizations around • 15 countries reached — Brazil, Canada, the world, including Feeding America® Chile, Colombia, France, Italy, Mexico, and The Global FoodBanking Network. Morocco, Poland, Portugal, Russia, Spain, Switzerland, Turkey and the U.S. We then issued a call to action for other companies and individuals to • 2 million corrugated boxes #HelpFillTheBoxes. Watch our story. • 20,000+ cartons of cut sheet paper

• 30,000 pounds of paper rolls

• 250,000 kraft paper bags Separators for Safety: Our Space Divider series of corrugated separators • 3,600 feminine hygiene care kits are the brainchild of our European team, launched in response to the Because of the need for social distancing, volunteerism looked a little different this COVID-19 pandemic. Available in a year with a variety of independent variety of shapes and sizes, Space volunteer opportunities offered to Dividers enable businesses, employees. Our U.S. and Canada locations restaurants, schools and public saw these results: administration offices to meet social • 1,619 volunteers, resulting in more than distancing requirements to keep 3,300 socially distant volunteer hours people safe and prevent the spread valued at more than $91,000 in labor of the coronavirus. • More than 1,400 of these volunteers participated in virtual volunteer projects during the United Way Day of Caring “These numbers are amazing, but they don’t adequately illustrate the behind-the- scenes work of numerous employees around the world. Working together across • 100 of these volunteers were global summer interns who also facilities, businesses and time zones, employees pulled together to ensure they volunteered virtually met the critical needs in their communities during the pandemic.”

— Dr. Alissa Campbell Shaw, senior manager, Community Engagement, and executive director IP Foundation

2020 GLOBAL CITIZENSHIP REPORT | 5 Vision 2020 Goals

Over the past decade, we have measured and reported on 12 voluntary goals with a 2010 baseline and a target completion date of 2020. We are proud to have achieved most of these goals, thus improving our impact on people and the planet. We recognize our work did not end in 2020. So, we have refined our focus and set more ambitious targets to guide us over the new decade. Our long-range Vision 2030 reflects our commitment to be a more sustainable corporation — one that generates profits for our shareowners and value for our stakeholders.

Sustaining Forests Investing in People

Goal: Increase third-party certifi ed fi ber by 35% Goal: Injury-free workplace Achieved: reduction in serious increase in certified 79% safety incidents 48% fiber volume

Goal: Increase recovery of old corrugated containers Goal: Measure and report on our charitable (OCC) by 15% by exploring new sources and diverting support for hunger, education, health and usable fi ber from landfi lls wellness and disaster relief in our communities Achieved: Achieved: increase in more than 66% recovery of OCC $165 million donated to charitable organizations since 2010, including more than $23 million in 2020

Improving Our Planet

Goal: Improve effi ciency in purchased energy use by 15% Goal: Reduce greenhouse gas (GHG) emissions (direct and indirect) by 20% improvement in purchased 4.2% energy efficiency Achieved: reduction in 21.4% GHG emissions

Goal: Integrate water management into regular facility Goal (restated in 2016): Reduce air emissions

assessment and proactively engage with stakeholders (PM, SO2, NOX ) by 30% in communities to address water-related issues within Achieved: the watershed reduction in Achieved with annual facility risk assessments 42% air emissions and launch of fi rst partnership in a priority basin; 62% of mills engaging local stakeholders on water

Goal: Establish processes promoting transparency, Goal: Reduce mill water discharges of oxygen- managing risk by monitoring and identifying opportunities depleting substances to receiving streams by 15% to collaborate with suppliers Achieved: Achieved with standardized scorecards to increase decrease in oxygen-depleting transparency, alignment and collaboration with targeted substances strategic suppliers 35%

Goal: Reduce fi ber lost in the manufacturing process Goal: Reduce manufacturing waste to landfi lls by to less than 0.75% 30% and ultimately to zero. Achieved: reduction in manufacturing fiber loss from 26% waste to landfills 0.68% reporting mills

2020 GLOBAL CITIZENSHIP REPORT | 6

The Impact of Our Goal Progress: Vision 2030 Goals

BUILDING A BETTER FUTURE FOR PEOPLE, THE PLANET AND OUR COMPANY Vision 2030 is our next generation of company goals. This commitment will accelerate our progress toward achieving our vision of being among the most successful, sustainable and responsible companies in the world. We are excited to begin tracking our Vision 2030 progress.

GOAL: HEALTHY & ABUNDANT FORESTS GOAL: RENEWABLE SOLUTIONS

Lead forest stewardship efforts globally Accelerate the transition to a low-carbon economy through innovative fiber-based products TARGETS: Source Conserve and restore TARGET: Advance circular solutions throughout our value 100% 1 MILLION chain and create innovative products that are of our fiber from acres (400,000 hectares) reusable, recyclable sustainably managed of ecologically significant or compostable forests or recovered forestland 100% fiber while safeguarding forests, watersheds and biodiversity

GOAL: SUSTAINABLE OPERATIONS GOAL: THRIVING PEOPLE & COMMUNITIES

Improve our climate impact and advance Promote employee well-being by providing safe, water stewardship caring and inclusive workplaces and strengthen the resilience of our communities TARGETS: TARGETS: Reduce our Scope 1, 2 Reduce our and 3 greenhouse gas water use by Achieve emissions by injuries for Improve the lives of employees and 100 million people in 25% ZERO contractors our communities 35% and implement Achieve aligned with the context-based water overall representation of women and 50% best-available management plans women in salaried positions, and implement climate science at all mills 30% regional diversity plans, including 30% minority representation in U.S. salaried positions

Learn more about our Vision 2030 commitment.

2020 GLOBAL CITIZENSHIP REPORT | 7 Our Businesses Creating innovative products from responsibly sourced, renewable resources.

INDUSTRIAL GLOBAL PRINTING PACKAGING CELLULOSE FIBERS PAPERS

73% OF TOTAL REVENUE 12% OF TOTAL REVENUE 15% OF TOTAL REVENUE

We create packaging products We create quality cellulose fiber We create papers that facilitate that protect and promote goods, products suitable for a wide education and communication. enable worldwide commerce range of applications. Cellulose As one of the world’s largest and keep consumers safe. We fiber is a sustainable, renewable manufacturers of uncoated meet our customers’ most raw material used in hundreds freesheet, we produce a challenging sales, shipping, of products people depend on variety of papers for business storage and display every day — including baby and home use. Customers rely requirements with sustainable diapers, towel and tissue on our signature brands solutions. Additionally, our products, feminine care, adult including Accent ® Opaque, Recycling business collects, incontinence and other personal Ballet®, Chamex®, consumes and markets more hygiene products that promote Hammermill®, POL®, PRO- than seven million tons of all health and wellness. Our DESIGN®, REY®, Springhill®, paper recovered annually in the innovative specialty pulps serve SvetoCopy® and Williamsburg U.S., making us one of North as a sustainable raw material for a wide range of printing America’s largest recyclers of across a variety of industries and converting applications.* recovered office paper and such as textiles, construction corrugated boxes. material, paints and coatings and more.

* In December 2020, International Paper announced a plan to pursue a spin-off of our global Printing Papers segment into a standalone publicly traded company in 2021, pending approval by our Board of Directors.

2020 GLOBAL CITIZENSHIP REPORT | 8 Our Operations

NORTH AMERICA EUROPE, MIDDLE EAST, AFRICA, * 27 pulp, paper and packaging mills RUSSIA AND SOUTH AMERICA 10 pulp, paper and packaging mills 162 converting and packaging plants 41 converting and packaging plants 16 recycling plants

3 paper bag facilities

We operate a printing and packaging products distribution business principally through six branches in Asia.

MARKETS SERVED

North America: Our global headquarters is in Memphis, Tennessee. In North America, we produce containerboard and corrugated packaging products; pulp for hygiene products, tissue and paper bags; and uncoated freesheet papers. We operate a recycling business with facilities across the U.S and Mexico. Most of our mills are in the U.S., with the exception of one recycled containerboard mill in Mexico and one pulp mill in Canada.

Europe, Middle East, Africa and Russia: Our Europe, Middle East and Africa businesses manufacture uncoated freesheet paper, coated paperboard, pulp, recycled containerboard and corrugated packaging. We supply these products to customers across the region and beyond. In Russia, in addition to our paper mill in Svetogorsk, we hold 50% ownership in a joint venture with Ilim Holdings (Ilim Group). Ilim is the largest foreign-domestic alliance in the Russian forest products sector. Ilim produces containerboard, softwood market pulp and uncoated and coated printing papers for Russia, Europe, China and other export markets.

South America: We produce uncoated freesheet and, until October 2020, we produced containerboard and corrugated packaging.* We supply packaging and paper to customers throughout Brazil and also export paper throughout Latin America, Europe and Asia.

Asia: Our Asian businesses include the distribution of pulp, kraft linerboard, and other paper and packaging materials, as well as the procurement of equipment and materials for the company’s global network.

* In October 2020, International Paper completed the sale of its Brazilian corrugated packaging business to Klabin S.A. The business has three containerboard mills and four box plants.

2020 GLOBAL CITIZENSHIP REPORT | 9 Our Sustainability Strategy As one of the world’s largest packaging, pulp and paper companies, we acknowledge our:

Commitment to Impacts and Responsibility to promote sustainability as being dependencies on natural the health of people and foundational to our vision, and human capital. our planet. mission and core values.

Our strategic framework, The IP Way Forward, guides how we view sustainability in our business and across our value chain. Building on The IP Way Forward, our Vision 2030 Goals outline our path to achieve our company’s vision and define our sustainability strategy for the next decade.

THE IP WAY FORWARD VISION 2030

INVESTING IN PEOPLE HEALTHY & THE IP WAY FORWARD ABUNDANTSAFETYVISION FORESTS 2030 Our Vision is INVESTING IN PEOPLE HEALTHYSAFETY & THE IP WAY INNOVATIVE PRODUCTS ABUNDANT FORESTS to be among the THRIVINGENGAGEMENT PEOPLE Our Vision is We do the right things THE IP WAY INNOVATIVE PRODUCTS tomost be among successful, the in the right ways, for & COMMUNITIESTHRIVINGENGAGEMENT PEOPLE the right reasons, all of We do the right things mostsustainable successful, the time. in the right ways, for & COMMUNITIES SUSTAININGthe right reasons, all of FORESTS sustainable the time. and responsible SUSTAINING FORESTS and responsible CORE VALUES CORE VALUES SUSTAINABLECOMMERCIALSUSTAINABLE COMMERCIAL & & companiescompanies Safety Safety Ethics OPERATIONAL EXCELLENCE Ethics OPERATIONS in the world. Stewardship IMPROVING THE PLANETOPERATIONALOPERATIONS EXCELLENCE in the world. Stewardship IMPROVING THE PLANET RENEWABLE INSPIRED PERFORMANCERENEWABLESOLUTIONS STEWARDSHIP INSPIRED PERFORMANCE SOLUTIONSSTEWARDSHIP

2020 GLOBAL CITIZENSHIP REPORT | 10 Our industry plays a critical role in supporting employment and business opportunities while promoting the long-term sustainability of natural resources. We believe the sustainable management, conservation and restoration of forestland is an important lever for mitigating climate change through carbon storage in forests. The sustainability of forestland is vital to the long-term prosperity of our company, our communities and our planet.

Advancements in technology and emerging consumer trends continue to impact how people view and value forests and other natural resources. From rising demand for e-commerce packaging to innovative uses for wood fiber, our industry is evolving faster than ever before. These changes present both challenges and opportunities for International Paper.

By identifying global trends material to our business, we focus our sustainability strategy on the issues where we have the greatest impact. To help inform and prioritize the focus of our sustainability strategy, we: • Engage with internal and external stakeholders using a variety of methods. These include conducting extensive research on emerging global megatrends, shifting stakeholder expectations and peer benchmarking to ensure our Vision 2030 sustainability strategy is focused on the issues where we have the greatest impact. • Assess key issues and associated risks and opportunities, adjusting our tactics when necessary as part of our deliberate improvement efforts. Learn more in Stakeholder Engagement. • Incorporate environmental, social and governance (ESG) considerations into our everyday processes and corporate governance structure. By doing so, we ensure that we adequately address risks, operate sustainably and responsibly, and create long-term value.

We’re also committed to increased transparency and public awareness. The IP Way — doing the right things, in the right ways, for the right reasons, all of the time — influences how we set our strategy and communicate to key stakeholders. We promote transparency by: • Disclosing company and sustainability performance information regularly. • Engaging with a wide range of internal and external stakeholders. • Reporting progress toward our goals.

Our sustainability strategy guides us as we deliver renewable solutions for our customers and advance a low-carbon, circular economy by: • Designing products people depend on every day toward a target of being 100% reusable, recyclable or compostable. • Collaborating with customers, suppliers and each other to build circular processes into our work.

Sustainability at International Paper encompasses our entire value chain — from fiber procurement to the end-use and recovery of our products. As such, the remainder of this report is organized around the key impact points along our value chain.

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Alignment with the UN Sustainable Development Goals We also align our priority material issues to the United Nations’ Sustainable Development Goals (SDGs). Given the nature, scale and reach of our company, we are making the most meaningful contributions to 12 of the 17 SDGs.

SUSTAINING FORESTS Our business depends upon the responsible management of the forests and watersheds from which we source our wood fiber. We actively engage with stakeholders in the communities where we operate to address concerns around forest ecosystem health and water-related issues. Read more about our efforts in Forest Stewardship Strategy.

Our Global Responsible Fiber Procurement Policy and practices work to sustain forests worldwide as forests. We will not knowingly accept fiber from controversial sources or forests where high conservation values are threatened by management activities. We actively monitor sourcing and supply chains to ensure compliance with our policy.

We work collaboratively with national and global forest conservation organizations to aid their efforts and to develop actions that improve our own procurement practices. These strategic partnerships are essential to achieve the scale necessary for long-term impact and to develop sustainable solutions that address critical regional and global forestry issues.

Our efforts to advance sustainable forest management and restore forest landscapes are important levers for mitigating climate change through carbon storage in forests. Because our products are made from these renewable resources, they enable our customers to reduce their carbon footprint, meet their sustainability goals and promote the transition to a low-carbon, circular economy.

2020 GLOBAL CITIZENSHIP REPORT | 12 SUSTAINABLE SUPPLY CHAIN As a global manufacturing company, we source a wide range of inputs from over 75,000 suppliers around the world. We are committed to doing business with integrity by: • Treating all people with dignity and respect. • Supporting our communities. • Honoring the laws that govern our operations.

We hold our suppliers to the same ethical principles to which we hold ourselves. As such, we expect our suppliers to adhere to the requirements in our Third Party Code of Conduct before we consider forming or extending business relations.

We support our supply chain sustainability strategy with three complementary drivers: • Promoting Transparency — addressing stakeholder expectations for sustainably sourced and manufactured products by purchasing fiber from responsible sources. • Managing Risk — monitoring, surveying and auditing our supply chain, including monitoring risk for all raw materials. • Strengthening Partnerships — engaging in dialogue with our key stakeholders regarding our sustainability practices.

MANUFACTURING RESPONSIBLY We recognize the impact of our manufacturing on the environment and on the well-being and dignity of people.

Improving our Environmental Footprint — Climate change affects our business both directly and indirectly through impacts to natural resources and through changing stakeholder expectations and policy requirements. Our Climate Change Statement provides insight into our commitment to improving our planet, reducing our environmental footprint and promoting the long-term sustainability of natural capital.

We play a significant role in responding to and helping to mitigate the potential climate change impacts from human activities. We do so by reducing greenhouse gas (GHG) emissions in our operations and throughout our value chain by: • Improving our energy efficiency and maximizing our use of renewable energy. • Practicing and promoting responsible forest stewardship. • Engaging suppliers throughout our supply chain. • Improving our manufacturing footprint. • Creating strategic partnerships.

Safeguarding People’s Health, Safety and Human Rights — Our most important measure of success is ensuring all employees, contractors and visitors arrive home safely every day. Since 2010, we have reduced serious injuries by 79% by building an active safety culture among our employees, suppliers and contractors. We believe an injury-free workplace is possible by doing the right things and committing to keeping each other safe.

We also promote human rights through our actions and values, which include: • Not tolerating child or slave labor, physical punishment or abuse. • Recognizing lawful employee rights of freedom of association and collective bargaining. • Committing to human rights as embodied in The IP Way, our Code of Conduct, our Third Party Code of Conduct, our Human Rights Statement and our actions around the world every day.

2020 GLOBAL CITIZENSHIP REPORT | 13 INNOVATIVE, RENEWABLE PRODUCTS Beyond our responsible manufacturing operations, we seek to elevate the role we play in helping to mitigate the potential climate impacts from human activities related to the use of our products. We embrace the concept of the circular economy — continually evolving the design of our products so they experience multiple lives through continuous cycles of recovery and reuse.

Driven by this concept of circularity, our sustainable innovation and design strategy involves: • Conducting market research to help us anticipate consumer trends and customer needs. • Striving to meet the evolving demands of consumers by using research, ingenuity and creative thinking to: • Transform renewable resources into reusable, recyclable or compostable fiber-based products that people depend on every day. • Design and innovate products and services while considering recyclability, sustainability, weight, materials and more. • Find new ways to use responsibly sourced wood fiber to create innovative, sustainable solutions for our customers and consumers around the globe. • Employing extensive testing practices to ensure products are durable and perform as expected.

RECYCLING AND BEYOND Our products are made out of renewable fiber from responsibly managed forests and recycled wood fiber. Our product designs help us accelerate the transition to a low-carbon economy by being circular in nature in the consumer environment: Innovate. Replace. Reduce. Recycle. Recover. Repeat.

To create the most sustainable business model possible, we look beyond basic recycling to evaluate our entire value chain and contribute to the circular economy through our manufacturing processes by: • Championing responsible forestry. • Putting residual materials to good use in the manufacturing process. • Recovering and reusing fiber. (We’re one of the two largest users of recovered fiber in the world.)

Knowing a paper product’s “end-of-use” — recycle bin or trash can — will never be fully within our control, we work to increase recycling rates and encourage more recovery in the residential sector. Given our global reach and the growth of online shopping and e-commerce, we see abundant opportunities to make an even greater impact. To this end, International Paper is a funding partner of The Recycling Partnership and is involved in projects with the American Forest & Paper Association, Fibre Box Association and the Confederation of European Paper Industries.

2020 GLOBAL CITIZENSHIP REPORT | 14 RESPONSIBLE BUSINESS PRACTICES Responsibility and stewardship underscore every action we take throughout our value chain. It’s part of our vision — we cannot be a sustainable or successful company without being a responsible one. It starts with people — attracting and developing a talented, diverse workforce and ensuring everyone returns home safely at the end of each day.

It extends to our communities. We seek to be a good neighbor by mobilizing our people, products and resources to address critical needs in the communities where our employees live and work. We do this by focusing our community engagement efforts in four key areas: • Education • Health and Wellness • Hunger • Disaster Relief

But it doesn’t end there. We deliver long-term value for all stakeholders through solid governance, a commitment to ethical business practices and positive government relations. For the 15th consecutive year, the Ethisphere Institute recognized International Paper as one of the World’s Most Ethical Companies. Of this year’s 135 honorees, we are one of only six companies to receive the recognition for 15 years running.

International Paper recognizes the importance of strategic collaboration with community partners, non- governmental organizations and industry associations to make meaningful progress across our value chain. Engaging with third-party organizations accelerates progress toward sustainable development throughout our global operations. Some of the groups we work with include:

American Forest and National Fish and Paper Association Wildlife Foundation

American Forest Foundation The Nature Conservancy ®

American Red Cross Paper + Packaging Board

Arbor Day Foundation The Recycling Partnership

Feeding America® Reading is Fundamental

Forest Stewardship Council ® Sustainable Forestry Initiative ®

Global FoodBanking Network World Business Council for Sustainable Development National Council for Air and Stream Improvement World Wildlife Fund

See a complete listing of our External Initiatives and Associations Membership.

Stakeholder Engagement Since our sustainability orientation encompasses our entire value chain, we focus our sustainability strategy on issues most material to our business, as determined by the stakeholders within our value chain. To remain attuned to our stakeholders, we employ a variety of regular stakeholder engagement methods.

2020 GLOBAL CITIZENSHIP REPORT | 15 CONTINUOUS ENGAGEMENT EFFORTS Our global stakeholder network ranges from people we engage with regularly through our operations to those in public positions who influence our activities. Our stakeholders include communities, customers, employees, governments, non-governmental organizations, shareholders and suppliers.

We employ a variety of stakeholder engagement methods to assess key issues, associated risks and opportunities, and to help inform and prioritize our sustainability strategy. These engagement methods and the subsequent analysis help us understand how well we are fulfilling our responsibility as a:

• Valuable partner for customers and suppliers. • Sound investment for shareholders. • Beneficial employer for our employees. • Good neighbor for the communities where we live and work.

One such stakeholder engagement method is to conduct wide-ranging dialogues, which allows us to:

• Work with each stakeholder group to define or • Identify potential solutions to stakeholder issues. improve standards and voluntary commitments. • Work constructively and communicate openly to • Support mutual learning. address any concerns. • Develop an appreciation of the significance and • Articulate our position on key issues. complexity of stakeholder issues. • Explain the inherent value of fiber-based products.

Learn more about each Engagement Method by Stakeholder group.

ASSESSING MATERIALITY By engaging internal and external stakeholders on their views of the relative importance of our company’s impact, programs and performance in key areas, we can optimize our sustainability strategy and further work to reduce our impact.

We have traditionally conducted our bi-annual materiality assessment through a survey of our stakeholders. As we began to develop our Vision 2030 goals in 2018, we shifted our approach to assessing materiality through more direct stakeholder engagement and robust benchmarking with internal and external stakeholders.

During 2018 and 2019, we conducted an extensive assessment focused on evaluating our most material areas of impact. We began our assessment with internal stakeholders. Using a combination of logical and creative thinking exercises paired with focus groups and workshops, we explored multiple viewpoints to generate as much input as possible. We interviewed our senior leaders to find out what was important for them and what they saw as the company’s priorities. We then analyzed and organized input to incubate ideas for the goals.

At the same time, we conducted extensive external research, analysis and benchmarking, including an analysis of megatrends in the world. We conducted benchmarking to find out what our customers are thinking about, what our investors’ expectations are, and what direction our competitors and peer groups are going as they think about the future of their own goals.

We then spent six months in the beginning of 2019 conducting scenario analyses and feasibility studies, and evaluating potential costs associated with advancing an ambitious set of 2030 goals derived from the issues our stakeholders prioritized.

We found that our key impact areas were:

• Healthy and Abundant Forests • Thriving People and Communities

• Sustainable Operations • Innovative Products

See a full list of our Material Issues mapped against our key impact areas. We will continue to refine this process and engage stakeholders on a regular basis to ensure we address emerging trends and new priorities.

2020 GLOBAL CITIZENSHIP REPORT | 16 Sustaining Forests A source of livelihood for millions, forests store carbon, purify drinking water and provide habitat for wildlife. Forests also enable us to make products people depend on every day. At International Paper, our entire business depends upon the sustainability of forests. We will continue to lead the world in responsible forest stewardship to promote healthy ecosystems for generations to come.

2020 Highlights

UNITED STATES • More than 500 miles of stream habitat improved. • 18,000 private landowners engaged in STRENGTHENING implementing forest stewardship practices. COMMUNITY RESILIENCE Through the Arbor Day Foundation’s Community ENHANCING CARBON SEQUESTRATION Tree Recovery Program, we planted 52,000 trees in IN FAMILY FORESTS communities affected by natural disasters in 2020, Families own 36% of U.S. forests. So, we strengthening these communities’ resilience and incorporate family forest owners in the global reducing approximately 10,000 metric tons of effort to sequester more carbon in their forestland net CO . 2 by joining the American Forest Foundation and The Nature Conservancy to support the Family Forest PROTECTING AND ENHANCING Carbon Program. ECOLOGICALLY IMPORTANT FORESTLAND EMPLOYING TECHNOLOGY FOR GOOD Since 2013, our Forestland Stewards partnership Our fiber procurement monitoring system uses with the National Fish and Wildlife Foundation mapping technology and risk-based due-diligence has resulted in: procedures to ensure we maintain or enhance the • 600,000 acres of native forests planted environmental values of the non-certified forests or enhanced. where we source.

BRAZIL • Supports the development of metrics and indicators to track progress on these targets SETTING SCIENCE-BASED both in a global context and within landscapes. TARGETS FOR FORESTS Our collaboration with World Wildlife Fund (WWF) LAYING DOWN ROOTS contributed to the development of the Initial Our investment in the “Raizes do Mogi Guaçu” Guidance for Business from the Science Based (“Mogi Guaçu Roots”) collaboration with WWF is Targets Network. This document charts a course helping to restore 100 hectares of the Mogi Guaçu of action to set science-based targets for nature by River basin in the Atlantic Forest of Brazil, one of the 2022 as well as: most ecologically important forests in the world. In • Defines how healthy natural ecosystems 2020, we helped restore nearly 20 hectares — contribute to our business. roughly 48 acres — of forestland. Hear one landowner’s story.

2020 GLOBAL CITIZENSHIP REPORT | 17 FRANCE FOSTERING BIODIVERSITY IP Forêt Services collaborated with WWF to ADVANCING CERTIFICATION develop a set of tools to facilitate the identification IP Forêt Services (IPFS) helps more than of high conservation value forests and to support 1,000 private forest owners in France implement forest managers in their harvesting operations. sustainable forestry management practices. In 2020, this collaboration resulted in the protection of two kilometers of waterways for the conservation of rare pearl mussels.

RUSSIA resources and strategic leadership. Extended through 2022, SKOLKOVO lets government, SUPPORTING THE SUSTAINABILITY LAB private-sector and environmental-organization For a decade, this Moscow School of Management participants learn about new global approaches SKOLKOVO program has delivered world-class to sustainable forest management. The program’s business education programs in areas such as goal is innovating to address the opportunities sustainability, the responsible use of natural and challenges of doing business in Russia’s forestry sector.

POLAND NURTURING A LOVE OF FORESTS Since 2015, Kwidzyn Mill employees have hosted ADVOCATING SUSTAINABILITY Eco-School programs for local students, providing We participate on the State Forest Advisory education on forest ecology, sustainable forest Committee to advise Poland’s government on management, paper production and recycling. forest sustainability issues and to help ensure native forests are managed sustainably.

INDONESIA AND GABON RIL-C has the potential to reduce carbon emissions from logging in tropical forests by half — about 1% CHAMPIONING FORESTS AS of global emissions per year. This innovative A CLIMATE SOLUTION approach will help Gabon reach its Paris Our global partnership with The Nature Conservancy Agreement emission-reduction commitments, helped to advance their Reduced Impact Logging potentially unlocking $150 million of funding from for Climate Mitigation (RIL-C) methodology. Norway’s government for rigorously demonstrated climate action.

MEXICO 21,000 trees across 40 acres of degraded land of the “Zona Nucleo,” the breeding ground for the RESTORING CRITICAL MONARCH Monarch butterfly in Estado de México. This BUTTERFLY HABITAT initiative also engages local communities that rely We teamed up with Arbor Day Foundation and the on the forest for their livelihoods, water and food. Land Life Company to support efforts to replant

“ The investment from International Paper has played an important role in the development of Reduced Impact Logging practices. In tropical forests, they can reduce emissions by 366 million

metric tons of CO2 per year, while maintaining an important source of timber revenue, improving worker safety and improving habitat in the world’s most biodiverse and carbon-dense forests.”

— Peter Ellis, global director of climate science, The Nature Conservancy

2020 GLOBAL CITIZENSHIP REPORT | 18 Forest Stewardship Strategy Our business depends upon the responsible management of the forests and watersheds from which we source our wood fiber. We recognize that a sustainably managed forest is one that maintains and enhances economic, social and environmental values for the benefit of present and future generations. This drives our commitments to: • Ensure forest stewardship in all the landscapes where we operate, while producing the products our customers need. • Enable healthy forest landscapes beyond our own supply chains by investing in research, restoration and conservation initiatives that benefit forests, watersheds and biodiversity.

To meet the expectations of our employees, customers and other stakeholders, we will lead forest stewardship efforts globally to build a better future for people, the planet and our company. Our forest stewardship strategy supports our climate change efforts, as forests represent the largest store of terrestrial carbon in the world.

Our forest stewardship strategy is built upon three pillars that constitute our commitment to forest stewardship.

FOREST STEWARDSHIP COMMITMENT

Responsible Fiber Fiber External Procurement Policy Certification Collaboration

These three pillars guide the actions we take to ensure a sustainable future for our forests. These actions include, but are not limited to: • Actively engaging with stakeholders in the communities where we operate to address concerns around forest ecosystem health and water-related issues. • Working directly with landowners and our wood suppliers to promote responsible forestry practices, including increasing the availability of certified fiber. • Collaborating with conservation organizations to support healthy forest ecosystems, enhance ecologically important areas and conserve and restore forests worldwide. • Monitoring sourcing and supply chains to ensure that our suppliers meet or exceed our Global Fiber Procurement Policy. • Using Geographical Information System mapping technology (herein “mapping system”) and pre-harvest due diligence procedures to provide transparency in fiber sourcing and assurances that our procurement activities maintain or enhance the environmental values of the forests from which we source. • Improving transparency of our supply chain through documentation of traceability to source, actions our suppliers take to enhance forests, and verification that the forests meet our sustainability criteria. • Reporting annually to CDP on our forest strategy, risk management, financial impacts and other forest- related topics. We received a score of B in 2020.

Most importantly, our fiber sourcing policies and practices support our commitment to protecting forests for generations to come.

2020 GLOBAL CITIZENSHIP REPORT | 19 Responsible Fiber Procurement Policy Our Global Fiber Procurement Policy and practices work to sustain forests as forests globally. We only procure wood from sources that adhere to our Global Fiber Procurement Policy requirements.

We work to prevent illegally harvested wood products from entering global marketplaces by supporting the U.S. Lacey Act and the European Union Timber Regulation. These laws help address illegal logging and prohibit trafficking of illegally harvested products — while protecting the competitiveness of legally harvested trees.

Certified land — which provisions 38.6% of our globally sourced fiber — is monitored through third-party standards. We have robust practices in place in each country where we operate to ensure compliance with our procurement policy on non-certified lands — representing approximately 60% of our global fiber sourcing. (See Fiber Certification). The following two programs in the U.S. and France are examples of our policy compliance monitoring.

TAKE A WALK IN THE WOODS WITH US Join a virtual forest tour with one of our fiber supply specialists and our certified wildlife biologist to see how International Paper supports sustainable forestry every day.

2020 GLOBAL CITIZENSHIP REPORT | 20 UNITED STATES: FIBER PROCUREMENT MONITORING TECHNOLOGY In 2018, we developed and implemented an innovative mapping system to monitor our responsible fiber procurement on non-certified forestland in the U.S., which represents approximately 66% of fiber sourced in the country. This mapping system enables us to conduct robust due diligence before a tract is harvested — building on our commitment to transparency in fiber sourcing and ensuring our procurement activities do not compromise the environmental values of the forests from which we source.

Ensuring your ﬁber-based products are responsibly sourced Source

Demand for responsibly sourced ﬁber incentivizes A supplier wants to landowners to continue to grow deliver wood ﬁber to and manage their forestland. International Paper.

Produce Assess

Responsible Sourcing at Work International Paper has developed an innovative mapping system that guides our responsible fiber procurement on Customers and consumers Our Fiber Supply team performs can feel good about using non-certified forestland in the United States. due diligence on non-certified fiber-based packaging, This innovative mapping system builds on land, which assesses the tract pulp and paper products for the presence of important from International Paper. our commitment to transparency in fiber conservation values. sourcing and ensures our procurement activities maintain or enhance the What’s On environmental values of the forests Our Map? from which we source.

Rare plant and animal species Deliver Review Areas of high biodiversity Areas that provide Important landscape connectivity International Paper contracts The presence of important with the supplier and forest conservation values prompts a Rare forest types products are responsibly discussion with the supplier about harvested and delivered to mills. responsible forest management approaches. If a risk is present, it must be mitigated before we agree to purchase the wood ﬁber. Plan

2020 GLOBAL CITIZENSHIP REPORT | 21 This fiber procurement monitoring system utilizes Geographic Information System mapping technology and risk-based due diligence filters, based on spatial data, that enable our fiber buyers to make informed decisions on individual forest tracts. Data captured includes: • Rare, threatened and endangered species • Species richness • Priority forest type • Landscape connectivity

Prior to harvesting, our fiber supply team uses the system to assess forest tracts for the presence of important species or forest habitat values. The presence of such conservation values prompts a discussion within the supply chain to ensure any risk to those values from harvesting activities will be mitigated — as well as to determine what forest management approaches can protect or enhance the attribute. If the risk cannot be mitigated, we do not purchase fiber from the tract.

International Paper began developing the system in 2018 by conducting a trial of the mapping technology using the fiber basin that supplies our Georgetown, South Carolina, Mill. By the end of 2020, we completed mapping and the development of due diligence procedures for all U.S. mills, which included field visits and habitat enhancements on thousands of acres of land.

International Paper is committed to the continuous improvement of this technology. In 2021, we will continue to refine the mapping system through the following: • Performing due diligence on chip fiber sources. • Documenting forest management or site enhancements occurring in the field. • Documenting the use of sustainable forest management practices within our supply chain. • Developing “rare species” working forest fact sheets to ensure our fiber buyers know how to mitigate environmental risk and promote conservation outcomes on the ground. • Testing new third-party environmental layers in our mapping system to further enhance forest habitat conditions for neotropical bird species. • Incorporating ENGO (environmental non-governmental organization) partners’ forest conservation data into our mapping and due diligence procedures to promote additional forest conservation principles within our supply chain

Our mapping and due diligence system will continue to build on our commitment to lead the industry in forest stewardship. By facilitating supplier and landowner outreach and education, we are advancing forest stewardship in our U.S. fiber supply chain.

FRANCE: FOREST MANAGEMENT AND HARVEST ADVISORY Comptoir des Bois de Brive (CBB) is a wood-sourcing subsidiary of the International Paper Saillat-sur- Vienne, France, Mill, handling 1.5 million metric tons of wood annually. CBB technicians provide woodland owners with advice as to their forests’ maintenance, management and development, as well as the marketing of their wood.

Every year, more than 600 private, public and institutional owners rely on the CBB. The organization enables our French sourcing team to monitor the many sources of wood in the country, including: • Monitoring the quality of our logging operations. • Facilitating verification of legal compliance. • Facilitating reduced-impact logging techniques. • Providing accident-emergency procedures and our sites’ environmental performance levels.

Learn more about CBB

2020 GLOBAL CITIZENSHIP REPORT | 22 Fiber Certification Certification contributes to consumer confidence that the products they purchase support environmentally, socially and economically sound practices — from tree seedling to product manufacturing and 2020 FIBER delivery processes. CERTIFICATION RESULTS To meet our customers’ demand for certified-fiber products, we champion third-party verification of sustainable forest management 48% increase in certified fiber through tools such as forest management and chain of custody volume over 2010 baseline* certification. Vision 2020 Goal: Increase third-party certified fiber by 35% Globally, we own approximately 270,000 acres of forestland in Brazil and have, through licenses and forest management agreements, harvesting rights on government-owned forestland in Russia. All the forestland we own in Brazil is certified under Brazilian National Forest Certification Program, Certificacão Florestal (CERFLOR) and Forest Stewardship Council® (FSC®) standards. Our forestland leased in Russia is also certified according to the Russian National Forest Certification System and FSC. Additionally, all our mills are certified to one or more third-party chain of custody standards.

CERTIFIED FIBER PROPORTION Percentage of certified fiber purchased 48% increase since 2010*

37.4% 38.3% 38.6% 34.8% 33.3% 33.3% 34.0% 31.4% 32.0% 27.7% 26.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

TONS OF CERTIFIED FIBER BY CERTIFICATION FSC SFI IN 2020 27% 24.1 59% million tons of certified fiber in 2020

PEFC 14%

* Progress refers to growth in proportion of certified fiber from 2010 baseline

2020 GLOBAL CITIZENSHIP REPORT | 23 We also recognize the administrative and financial COUNTRY-LEVEL challenges of forest certification for small landowners. CERTIFICATION PROFILE In response, we invest our own financial and technical resources to support landowners to achieve certification Percentage of certified fiber purchased of their forest management practices, including in 2020 managing our own group certificates. Two programs in the U.S. and France demonstrate how we assist landowners with certification. PEFC 85.8% CERTIFIED FOREST MANAGEMENT LLC FSC In the U.S., small private forest landowners are reluctant to take on the additional costs or administrative burdens 64.2% associated with certification, so we made it easier for them.

In July 2012, we formed our own FSC® forest management 30.0% group — Certified Forest Management LLC (CFM). CFM is 38.6% managed by our fiber supply teams and provides private 33.3% forest landowners a cost-effective means to become

FSC-certified. 28.2% 29.5% Since 2012, International Paper has enrolled thousands of acres of privately owned forestlands into CFM. At the end 3.8% 34.2% 85.8% 10.4% of 2020, the group included over 400 private landowners North America EMEA* Brazil Global from 11 states encompassing approximately 880,230 acres. NOTE: Dual certified lands are reported as FSC * Europe, the Middle East and Africa COMPTOIR DES BOIS DE BRIVE (CBB) In addition to the landowner support detailed in Responsible Fiber Procurement Policy, the CBB is All International Paper Mill locations receiving recognized by our Programme for the Endorsement of virgin fiber meet the FSC Controlled Wood Forest Certification (PEFC) and FSC chain-of-custody Standard as part of our commitment to certificates and those of our suppliers. A specific sourcing responsibly and in line with our Responsible Fiber Procurement policy. All verification program created by CBB monitors the wood that does not come from a certified declarations of those few suppliers who do not yet have a forest is both evaluated against the FSC third-party verified chain-of-custody. Controlled Wood standards and our Policy using tools such as our fiber procurement To see our current fiber certifications and our Global Fiber monitoring system in the U.S., compliance Procurement Policy, visit Policies and Certifications. auditing and risk mapping.

COUNTRY-LEVEL France Russia FIBER SOURCING 2.1% 3.1% BREAKDOWN Poland 3.6%

Canada In U.S. 2.8% 2020 83.6% Brazil 4.8%

2020 GLOBAL CITIZENSHIP REPORT | 24 External Collaborations The soil, water, biodiversity, climate, cultural, economic and recreational values of healthy forests benefit the planet and communities far beyond our own supply chains. As one of the world’s largest users of wood fiber, we want to amplify our positive impacts on forests via conservation and restoration activities that complement our commitment to sustainable forest management and responsible sourcing.

Our national and global forest conservation collaborations promote healthy and abundant forests through:

MANAGEMENT CONSERVATION RESTORATION

MANAGEMENT We use and promote best practices for working forests — both within EXPLORE OUR and outside of our supply chain — because we know that sustainable PARTNERSHIPS: forestry is important to biodiversity, water and air quality, and local • American Forest Foundation economies. Our collaborations advance initiatives in these areas: • The Nature Conservancy • Research in forest science and economics • American Bird Conservancy • Enhanced carbon sequestration and climate mitigation in working forests • Forestland owner education and outreach • Sustainable forest management education • Creating enabling conditions for sustainable forest management policies and practices

FORESTS AND THE CLIMATE

Sustainable management, conservation and restoration are important levers for mitigating climate change through carbon storage in forests. Several of our collaborations are working to advance forests as a natural climate solution. We invest in the Family Forest Carbon Program managed by American Forest Foundation in partnership with The Nature Conservancy, as well as Natural Climate Solutions research through The Nature Conservancy.

2020 GLOBAL CITIZENSHIP REPORT | 25 CONSERVATION We work with environmental advocates, government agencies EXPLORE OUR and others to conserve the biodiversity and health of all forests. PARTNERSHIPS: Our collaborations advance initiatives in these areas: • National Fish and • Species conservation through habitat enhancement Wildlife Foundation • Biodiversity monitoring • Savannah River Clean Water Fund • American Bird Conservancy

RESTORATION Our entire company depends on sustainable forests, so we’re working EXPLORE OUR daily to restore the health of forests in priority regions, such as the PARTNERSHIPS: Mogi Guaçu River basin in the Atlantic Forest of Brazil and the • World Wildlife Fund Monarch butterfly habitat in Mexico. Our collaborations advance initiatives in these areas: • Arbor Day Foundation • Reforestation of native species • National Fish and Wildlife Foundation • Watershed restoration

IMPROVING FOREST MANAGEMENT TECHNIQUES FOR CARBON STORAGE

We are collaborating with The Nature Conservancy (TNC) on Natural Climate Solutions, the conservation, restoration and improved forest management techniques that increase carbon storage and reduce greenhouse gas emissions in managed forest landscapes.

In 2020, we completed the first of a two-phase effort to develop a suite of Reduced-Impact Logging for Climate Mitigation (RIL-C) forestry practices, which has˛the potential to reduce the carbon emissions associated with logging in tropical forests by half. Progress made in the tropics of Indonesia and Gabon has informed the second phase of the program, which launched in 2020. During this phase, TNC will integrate RIL-C and bioacoustic monitoring with Forest Stewardship Council (FSC®) certification standards. This integration will establish a next generation of climate-smart, sustainable forest products in the Yucatan peninsula of Mexico and in the Central Appalachian region of the U.S.

Learn how we’re sustaining forests to ensure there will be more trees for generations to come

2020 GLOBAL CITIZENSHIP REPORT | 26 Sustainable Supply Chain An efficient and responsible supply chain is key to obtaining quality raw materials and services that support our operations and ensure we meet our customers’ needs. We establish and enforce guidelines to ensure our suppliers operate ethically and responsibly throughout our supply chain. We expect our business partners to share our values.

2020 Highlights

THROUGHOUT OUR GLOBAL SUPPLY CHAIN, WE PROMOTE:

• Safe and healthy working conditions • High ethical standards • Protection of human rights and dignity • Responsible use of natural resources • Compliance with all applicable laws

Registered SmartWay® Shipper SmartWay is a U.S. Environmental Protection Agency (EPA) program that helps improve freight transportation efficiency. Helping Suppliers Maintain Bird Habitats American Bird Conservancy (ABC) and International Paper are working together to of our total ton-miles* develop bird-focused management in North America are recommendations for private forest 94% SmartWay carriers landowners — including special practices landowners can employ to ensure habitats are maintained for at-risk species. Through our extensive fiber supply network, we can help connect ABC with private forest landowners ranging from large forest 52% reduction in CO emissions 2 management investment companies to small per ton-mile* over the past six family forest owners. years among SmartWay carriers

* Transportation metric representing one ton of product transported one mile

2020 GLOBAL CITIZENSHIP REPORT | 27 More than 600 diverse Focus on Supplier Diversity Our commitment to diversity extends to our suppliers in our current supplier relationships, as evidenced by our U.S. Supplier Diversity Program. A diverse supplier supplier diversity program base enables us to contribute to the economic well-being of the communities where we live and work.

We partner with diverse firms that can provide value to our business and throughout our value chain. We actively seek to expand and advance our current pool of diverse suppliers through education and mentoring. A primary focus of our program is supporting capacity-building for diverse businesses. We aim to create prosperity through empowerment.

18% increase in our spend with diverse-owned businesses from 2019 to 2020

COVID-19 and our Used their supply Ensured our key chain expertise to suppliers were Supply Chain Highlights source the PPE designated as The COVID-19 pandemic placed significant our essential essential businesses. pressure on supply chains around the world, workers needed. and the extensive supply chain of International Paper was no exception. In response, our world-class global sourcing teams: Created regional Identified new pipelines distribution centers at through minority- and three strategically women-owned located International businesses for the Paper facilities to materials and PPE our distribute PPE to our operations required global facilities. to make the essential products people depended on during the pandemic.

2020 GLOBAL CITIZENSHIP REPORT | 28 Responsible Sourcing Strategy Our global sourcing organization plays a critical role in delivering on our vision and commitment to sustainability. Our sourcing teams are deeply engaged in efforts around supply chain transparency, supplier compliance, risk management and collaboration opportunities.

With an annual spend of approximately $15 billion, we source a wide range of inputs from suppliers around the world. This includes: • Wood fiber • Electricity • Recovered fiber • Manufactured parts and services • Chemicals • Corporate services • Fuel • Logistics services, such as transportation

Approximately half of our suppliers are based in North America, and the rest are based in Asia, Europe, Latin America, North Africa and Russia. The majority of our suppliers fall into one of three categories: manufacturers, contractors or distributors.

THIRD PARTY CODE OF CONDUCT We expect our business partners to share the values and principles outlined in our Third Party Code of Conduct (TPCOC). This is our standard for safe and respectful workplace conduct and ethical business practices. 2020 SUPPLY CHAIN RESULTS A supplier’s compliance with the TPCOC — or with its own code of Standardized scorecards to conduct, if it contains similar ethical principles — is an essential factor increase transparency, alignment in our decision to enter into or extend an existing business and collaboration with targeted relationship. Each supplier subject to our TPCOC is responsible for strategic suppliers ensuring that its employees, representatives and subcontractors also understand and comply with the principles of the TPCOC. If a supplier Vision 2020 Goal: or other third party fails to comply with the law or does not address Establish processes promoting contractual non-compliance in a timely manner, we reserve our transparency, managing risk by contractual rights to terminate the relationship. monitoring and identifying opportunities to collaborate Essential to maintaining our business relationships, our TPCOC is part with suppliers of our standard supplier contracts and our purchase order terms. Approximately 90% of our contracted spend is covered with written agreements containing a commitment to comply with the principles of the TPCOC. We continue to embed this requirement in new and renewed contracts.

Our detailed global sourcing process includes screening third parties for a wide variety of risks, including corruption risks. We seriously consider the results of those assessments and manage corruption risks appropriately.

2020 GLOBAL CITIZENSHIP REPORT | 29 THIRD PARTY CODE OF CONDUCT SUMMARY

SAFETY ENVIRONMENTAL SOCIAL LEGAL/ETHICAL

• Promote safe and • Comply with • Foster respect and • Comply with laws, healthy work sites environmental laws dignity regulations and treaties • Provide tools needed • Reduce impact on • Forbid discrimination to reduce safety risks the environment or harassment • Prohibit extortion, and climate fraud, bribery or • Maintain well- • Obey laws on kickbacks established safety • Responsibly compensation, work rules manage natural hours and benefits • Forbid improper gifts resources or entertainment to • Supply personal • Prohibit forced labor, government officials protective equipment • Reduce and illegal child labor and eliminate waste human trafficking • Avoid agreements or actions that • Offer grievance restrain trade processes without retaliation • Report any conflicts of interest

Make each day a safe day Use resources wisely Value people Act with integrity

HUMAN RIGHTS We promote human rights through our actions and values, as noted in our:

• Human Rights Statement — reflecting our commitment to protect and advance human rights globally. We respect international principles of human rights, including those expressed in the United Nations Declaration of Human Rights. • Human Rights Policy — applying to all employees, our officers and our board of directors. It provides guidance on the importance of respecting human rights, as well as of being aware of the company’s impact on human rights in its operations across the world. • TPCOC — outlining our expectations of suppliers and their employment practices, including the expectation to employ workers who have a legal right to work.

Our statement, policy and code ensure that as a company, we:

• Do not tolerate child labor, slave labor, physical • Seek to do business with suppliers who share punishment or abuse. our standards to reduce the potential for human rights abuses in our supply chain. • Are alert to signs of human trafficking or slave labor. • Support workers being free to terminate employment at any time upon reasonable notice. • Do not tolerate deceitful or violent behavior. • Expect suppliers and their contractors to refrain • Comply with the employment laws of every from any conduct that uses threats, force or country where we operate. other forms of coercion, abduction, intimidation • Recognize lawful employee rights of free or abuse of power for the purpose of association and collective bargaining. exploitation or slavery of any individual. • Comply with applicable laws requiring a • Expect suppliers to comply with all laws declaration on human trafficking and slavery, governing human trafficking and slavery, as well such as the California Transparency in Supply as support the elimination of child labor and Chains Act and the UK Modern Slavery Act. slave labor in their supply chains.

2020 GLOBAL CITIZENSHIP REPORT | 30 Sourcing Sustainably We use a number of tools and processes to focus on the most critical commodities and suppliers and to conduct appropriate due diligence and corrective actions accordingly. Our supply chain sustainability strategy, based on our TPCOC, is supported by three complementary drivers:

We establish and improve processes that drive PROMOTING TRANSPARENCY openness and accountability.

We reinforce legal, ethical and business MANAGING RISK expectations and monitor compliance.

We focus on collaboration, innovation and STRENGTHENING PARTNERSHIPS deliberate improvement in supplier relationships.

Risk Management Approach With a complex, global supply chain, our sourcing operations face a number of potential supplier risks. These risks could include:

• Corruption and ethical violations • Natural disasters • Safety concerns • Geopolitical challenges • Environmental irresponsibility • Labor/contractor hiring and wage practices

These human, economic and natural risks can be challenging for a company operating around the world, where legal codes, cultures, languages and business practices can vary. We also face risks that are specific to our own business operations, such as risks in commercial and legal contract terms, and concentration of supply into our sites. To manage the most business-critical risk areas, we consider a number of factors, including but not limited to:

• Countries of operation • Supply concentration/security into International Paper sites • Supplier ethical policies/practices • Supplier cyber security policies/practices • Supplier safety record/rating • Reputational issues including violations of laws • Beneficial ownership data and contract terms • Supplier relationship with government officials

The tiered process described on the following page helps our company identify, evaluate and mitigate risk across economic, social and environmental realms.

2020 GLOBAL CITIZENSHIP REPORT | 31 ESTABLISH EXPECTATIONS ASSESS AND MITIGATE RISK MONITOR • Third Party Code of Conduct PERFORMANCE • Supplier pre-screen (TPCOC) in contract and questionnaire purchase orders globally • Supplier site visits • Risk assessment and • Communicate TPCOC • Supplier watch list approval process expectations • Supplier sustainability • Supply security • Supplier webpage surveys assessment matrix • Third-party supplier audits • Contract excellence • Corrective action plans • Risk management plans

ESTABLISHING EXPECTATIONS Risk management begins with our TPCOC. Approximately 90% of our contracted spend is covered with written agreements containing a commitment to comply with our TPCOC or with a third party’s own code of conduct if it has substantially similar principles.

Our requirement of suppliers to promote the principles of our TPCOC to their own suppliers, contractors and laborers helps ensure responsible business practices throughout our supply chain. All sourcing employees are required to complete a training module.

ASSESSING, MONITORING AND MITIGATING RISK As part of our strategic sourcing process, our sourcing teams conduct a pre-contract risk assessment. The assessment provides transparency and highlights areas of potential corruption, as well as social, environmental and financial risk.

After contracting with a supplier, we continue to assess and monitor them for risk via a third-party survey platform. Depending on the survey results, we may initiate a third-party on-site audit to take a closer look at the supplier. Our buyers use the feedback from these surveys and audits to help suppliers create action plans for continuous improvement. We reserve the right to terminate a relationship with a supplier whose values, policies or practices are not aligned with our expectations.

Fiber Supply Our sourcing team, global fiber supply team and recycling business manage the purchasing of our most critical inputs: wood and recovered fiber. Being among the world’s largest users of new and recovered fiber, we seek suppliers who share our commitment to quality and responsibility. Our Global Fiber Procurement Policy and Vision 2030 represent our commitment to healthy and abundant forests and ensure solid risk management for our most important resources.

Learn more about our current fiber certifications and sustainability policies.

Learn more about our approach in Sustaining Forests.

2020 GLOBAL CITIZENSHIP REPORT | 32 Transportation We contract with freight carriers for both inbound and outbound shipments — utilizing various transportation modes, including truck, rail, ocean liner and intermodal shipping. As a large shipper of paper and pulp, our global scale and consistent volume requirements make us a valuable long-term customer. We constantly work to be the “shipper of choice” for our transportation providers, supported by our: • Strategic Carrier Council — The council fosters strong alignment between International Paper and our strategic transportation carrier partners in the areas of industry trends, legislation, risk management, safety and sustainability. It also helps create shared value, increase transparency and position International Paper as a shipper of choice. • Supplier Partnerships — We seek suppliers who share our goal of reducing our overall carbon footprint even as we grow our business. We work with carriers to improve fuel efficiency, maximize average weight per shipment and optimize shipping routes to reduce mileage. • SmartWay® Shipper Certification — A U.S. EPA program, SmartWay plays a key role in our transportation carrier performance management process and sourcing decisions. Our work with SmartWay carriers account for more than 94% of our total ton-miles* in North America. Over the past

six years, we have achieved a 52% reduction in CO2 emissions/ton-mile among SmartWay Carriers.

Supplier Social and Environmental Impact In supplier reviews, council meetings and other collaborative programs, we continue to drive the discussion with suppliers on environmental sustainability, efficiency and social impact. We recognize team and individual efforts to align sourcing practices with global citizenship goals.

To achieve one such goal, we have a longstanding commitment to supplier diversity. Through a strategic sourcing process, we work to diversify our supplier base by actively seeking to include small and diverse businesses. Having a diverse supplier base allows us to contribute to the economic well-being of the communities where we live and work — and provides value to our business and throughout our value chain.

U.S. SUPPLIER DIVERSITY PROGRAM Our Supplier Diversity Program seeks to expand and advance our current pool of more than 600 diverse suppliers through education and mentoring. A primary focus is supporting capacity building for diverse businesses. We aim to create prosperity through empowerment.

We support and collaborate with leading organizations that advocate on behalf of businesses owned by minorities, women and veterans. These partnerships are part of our efforts to stay connected to the best and brightest of diverse suppliers. They include several organizations across the country, including but not limited to the:

• National Minority Supplier Development • U.S. Hispanic Chamber of Commerce Council (NMSDC) (USHCC) • Women’s Business Enterprise National • National Veteran Business Development Council (WBENC) Council (NVBDC) • U.S. Pan Asian American Chamber of Commerce (USPAACC)

* Transportation metric representing one ton of product transported one mile

2020 GLOBAL CITIZENSHIP REPORT | 33 In 2020, our direct spending with diverse-owned businesses increased by 18% over 2019. The International Paper supplier diversity team participated in 10 diversity outreach events in 2020, enabling us to proactively and aggressively search for exceptional and competitive certified diverse businesses in a myriad of product and service categories. Our supplier diversity team conducted quarterly mentoring discussions with executive leaders of several key diversity suppliers in our supply chain.

In 2020, we received a number of industry recognitions and awards for our supplier diversity program and leadership, including:

Supplier Diversity Top 30 Champions Corporation All-Star of Diversity of the Year Minority Business Diversity Plus Magazine Minority Business News USA Council Continuum

SUPPLIER DIVERSITY

COMMUNITY DIVERSITY Supporting the Reflecting the diversity communities in which of our employees, clients we live and work and communities

PARTNER VALUES Partnering with diverse Responding to the firms that can provide requirements of our value to our business customers who expect and throughout our us to share their values supply chain

Learn more about International Paper Supplier Diversity

See how a sustainable supply chain allows us to meet customer needs

2020 GLOBAL CITIZENSHIP REPORT | 34 Manufacturing Responsibly We tackle the toughest issues in our value chain, improve our environmental footprint and promote the long-term sustainability of natural capital. We do this by reducing our energy usage, greenhouse gas (GHG) emissions, air emissions and waste generated, as well as by being responsible stewards of the water we use and return to the environment.

2020 Highlights Russia Mill Certified Safe and Sustainable Our Svetogorsk, Russia, pulp and paper mill IMPROVING OUR FOOTPRINT received ISEGA certification for its bleached chemical thermo-mechanical pulp (BCTMP), confirming the product’s sustainability and 21% reduction in greenhouse safety for food-grade packaging. gas emissions since 2010

42% reduction in other air emissions since 2010

Nearly 75% of mill energy INVESTING IN FACILITIES derived from renewable biomass residuals rather than fossil fuels Over the past five years, we have strategically invested $6.3 billion in our facilities to improve product Invested more than $700 million quality and environmental in energy efficiency performance, as well as to lower improvements since 2010 costs and strengthen our businesses.

2020 GLOBAL CITIZENSHIP REPORT | 35 Supporting the Next Generation Our REACH (Recruit, Engage, Align College Hires) program recruits and develops early-career engineers and safety professionals for our U.S. mill system, preparing them to become future leaders. We hired 105 REACH engineers in 2020.

Advancing Water Thinking Differently Stewardship about Sustainable International Paper joined the Savannah River Operations Clean Water Fund, a coordinated effort among diverse stakeholders to permanently protect and Our Vision 2030 Sustainable Operations goal responsibly manage forests — nature’s water filter addresses the most significant planet risks — in the Savannah River watershed of Georgia. and reflects a renewed commitment to Our Port Wentworth Pulp Mill and Savannah improve our footprint across our businesses, Containerboard Mill rely on a sustainable supply operations and value chain. We set two of water from the Savannah River. ambitious targets: • Greenhouse Gas Emissions: We must manage climate-related risks to advance Mills Empowering a low-carbon economy and to contribute to our planet’s decarbonization. Our GHG Sustainability targets encompass all three scopes, Our Bogalusa Mill began a sustainable water aligning with the best-available reduction project expected to reduce mill effluent climate science. by a half million gallons a day. • Water Stewardship: We expanded how we think about our use of and impact on water Our Valliant Mill has 22 active projects across the — recognizing all water issues are local, mill focused on improving sustainability across and every watershed has different multiple areas, such as improving fiber recovery, characteristics, threats and opportunities. reducing gas usage and increasing the ability to To be a good water steward, we must use reuse water. water efficiently and responsibly, and The Adana Box Plant in Eastern Turkey received a respond to the broader context of each Gold Medal Certificate from the Adana Organized watershed where we operate. Industrial Zone. The award highlights the site’s environment, health and safety team and its efforts to minimize the plant’s wastewater.

Our Red River Containerboard Mill manufacturing excellence group completed two Green Belt projects focused on reducing soda loss and improving the efficiency and circularity of its manufacturing process. Actions to reduce or eliminate soda loss across our system resulted in reduced waste, chemical usage and GHG emissions, while also generating cost savings.

2020 GLOBAL CITIZENSHIP REPORT | 36 Sustainable Manufacturing Strategy Environmental stewardship and responsible manufacturing practices are fundamental to how we operate. Our sustainable manufacturing strategy enables us to minimize environmental, health and safety impacts during the design, manufacture, distribution, use and end-of-life of our products. As we look to the future, we recognize our responsibility to enhance processes and improve our environmental and social impacts.

To monitor and track our progress across the above-mentioned key areas, we annually collect, review and validate company-wide environmental performance data. Environmental teams at our facilities, global financial services and subject-matter experts (SMEs) enter this data and other key indicators into our global data collection system, METRIX. Corporate Environment, Health and Safety staff and other SMEs validate the data to ensure accuracy.

The METRIX system uses a multi-year process and continues to improve our process for data collection. Data parameters and calculation methods use a combination of international, government, industry and company standards and protocols. We made reasonable effort to ensure this report’s information is accurate and complete. We did not solicit external assurance.

PAPER-MAKING CONVERTING PROCESS PLANT PROCESS

TREES 1

7 PAPER ROLLS 2 WOOD CHIPS

CORRUGATOR

8 2 LOGS

3 PULPING PROCESS

9 DIE CUTTER 9 FOLDER / GLUER PAPER 4 MACHINE PAPER ROLLS

6 10 CONVERTED PRODUCTS 5 DRYERS

6 PAPER REAMS

2020 GLOBAL CITIZENSHIP REPORT | 37 Energy Efficiency We seek to improve our energy performance, thus reducing both greenhouse gas and other air emissions and the amount of energy consumed. Our manufacturing processes require large amounts of energy, and we meet nearly 75% of these energy needs through the use of renewable biomass residuals. The remainder comes from purchased energy, including natural gas, coal, fuel oil, tire-derived fuel and electricity and steam from utilities.

International Paper increases energy efficiency by optimizing processes, equipment and procedures. Some of these projects include:

• Boiler efficiency improvements • Compressed air efficiency • Electricity conservation • Evaporation efficiency • Increased renewable fuel capability • Machine energy efficiency • Venting reductions • Water reuse

Additionally, we share energy consumption benchmarking across our pulp and paper production facilities to identify gaps and focus resources. An internal energy audit team regularly reviews facilities’ practices and equipment to identify projects that will improve energy efficiency. By anticipating and responding to changes in policy and regulation, our cross-functional energy council maximizes the effectiveness of capital deployment as it relates to energy.

PURCHASED FUEL EFFICIENCY BREAKDOWN OF ENERGY SOURCES Million British Thermal Units per metric ton of production* IN 2020*

9.50 9.20 9.30 9.20 9.15 8.98 8.97 8.85 8.65 8.67 9.10 Purchased Residual Biomass Biomass** GOAL (8%) 8.07 (63%)

Coal & Petroleum Coke (2%)

Natural Gas (20%)

2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fuel Oils (1%)

Net Purchased Electricity & Steam (5%)

of mill energy derived from Other (1%) biomass residuals rather 72% than fossil fuels in 2020

* Energy efficiency goal progress is calculated on a ‘source basis’ per DOE standards and only includes pulp and paper mills. YOY data reflects changes related to acquisitions and divestments. ** Residual Biomass is leftover material originally purchased as wood fiber, such as tree limbs and bark, generated during the production process and beneficially reused as energy. This is not included in purchased fuel efficiency calculations. Energy source percentages are calculated on a ‘site basis.’

2020 GLOBAL CITIZENSHIP REPORT | 38 Since 2010, we have invested more than $700 million in energy efficiency improvements and fuel diversity. Through 2020, we realized an energy improvement of nine trillion BTUs (British thermal units) compared to our 2010 baseline. 2020 ENERGY While we met our emissions reduction goals, we did not meet our EFFICIENCY RESULTS goal to improve energy efficiency by 15% by 2020. Economic downtime and market factors were the most significant drivers in the 4.2% improvement in purchased decrease in energy efficiency progress this year, accounting directly energy efficiency* or indirectly for the majority of the efficiency loss. Five mills, however, Vision 2020 Goal: Improve set all-time bests for monthly energy efficiency. Despite setbacks in efficiency in purchased energy progress toward this goal, we will continue our energy efficiency use by 15% efforts, seeking ways to become more energy efficient as we pursue our Vision 2030 GHG reduction goal. This includes continuing to implement investments to make us more efficient.

CALCULATION METHODOLOGY We use the U.S. Department of Energy (DOE) “source-basis” calculations that use efficiency numbers used by the DOE for purchased electricity, steam and fuels. This goal only includes pulp and paper mills in the calculations. Depending on both mill acquisition date and availability of data, year over year mill inclusions may differ.

Emissions Reduction Strategy Our strategy for lowering both air and GHG emissions is connected to continuous improvements in our operations and our management of purchased energy. We reduce these emissions by implementing efficient manufacturing technologies; investing in energy efficiency improvements; fuel switching; and operating our mills with renewable biomass residuals and less fossil fuel. Using less fossil fuel both reduces our operating costs and decreases our GHG emissions.

Each of our sites must monitor and report air and GHG emissions on a regular basis. In addition to complying with regulatory requirements, all of our sites use a common standard for air emissions management provided by our Environment, Health and Safety (EHS) Management System. This includes a set of requirements for stack testing and continuous monitoring of pollutants — such as particulate matter

(PM), sulfur dioxide (SO2) and nitrous oxides (NOX) from large sources. In addition, sites must properly design, operate and maintain processes and address community concerns. The performance standards are audited as part of our periodic EHS audit assessments.

2020 GLOBAL CITIZENSHIP REPORT | 39 GHG Emissions Reductions We recognize the importance of our role in responding and helping to mitigate potential climate change impacts. Our primary actions in response to climate change are to (1) reduce GHG emissions in our 2020 GHG EMISSIONS operations through improvements in energy efficiency and (2) RESULTS maximize the use of renewable energy, such as carbon neutral biomass residuals, versus fossil fuels. Our goal of reducing GHG 21.4% reduction in GHG emissions by 20% by the end of 2020, from a 2010 baseline, included emissions both Scope 1 and Scope 2 emissions. Scope 1 emissions are direct Vision 2020 Goal: Reduce GHG emissions resulting from our own operations, including on-site fossil emissions by 20% (direct and fuel usage, and relatively modest emissions from on-site landfills and indirect) treatment of discharged water. Our Scope 2 emissions are indirect emissions resulting from the offsite utility generation of the steam and electricity we purchase.

Through continuous improvements in operations, equipment, energy efficiency and fuel diversity, we achieved significant company-wide reductions in Scope 1 and Scope 2 GHG emissions. We succeeded in reducing our emissions by 21.4% in 2020, exceeding our Vision 2020 goal. We will continue to evaluate and implement improvement projects as we pursue our Vision 2030 GHG goal.

GREENHOUSE GAS EMISSIONS*

Million metric tons carbon dioxide equivalent (CO2e)

Scope 1 / Direct Scope 2 / Indirect Total

15.8 14.6 10.6 14.4 13.7 10.1 10.1 9.3 12.9 12.9 12.7 12.7 12.6 12.5 8.7 8.8 12.4 GOAL 9.0 8.8 8.5 8.7 8.7 12.6

5.2 4.5 4.4 4.3 4.2 4.0 3.9 3.7 4.1 3.8 3.7

2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* YOY data reflects changes related to acquisitions and divestments.

2020 GLOBAL CITIZENSHIP REPORT | 40 Our GHG goal includes all facilities owned and operated by International Paper. We operate 222 converting and recycling locations. Collectively, these operations emit approximately 1.3 million metric tons CO2e globally. Over time, emissions from our converting facilities have trended slightly downward by approximately 24% since 2010.

Our reported emissions do not include biogenic GHG emissions, which were 31.3 million metric tons in 2020. Emissions outside of our direct operations and purchased energy are considered Scope 3 emissions and are not included in this report. Our Vision 2030 goal includes Scope 3 emissions, which are upstream emissions associated with suppliers and downstream emissions from shipping or recycling our products. We continue to work with partners and increase efforts to reduce our emissions. We report annually to CDP on our climate strategy, risk management, financial impacts and other climate-related topics. We received a score of B- in 2020.

CALCULATION METHODOLOGY Our GHG emissions calculations include all facilities that are fully owned and operated by International Paper. The energy used to convert the paper into a product at these facilities is considered part of our Scope 1 and Scope 2 emissions. Baseline emission data recalculations are made to incorporate acquired facilities and remove divested facilities, which accounts for changes in emissions data from year to year. Our GHG emissions are measured and reported in line with recommendations from the GHG Protocol.

SCOPE 1: In the U.S., we follow the requirements for the Environmental Protection Agency’s Mandatory Reporting Rule of Greenhouse Gases (MRR-GHG) to calculate emissions. Methodologies include use of default factors (2007 International Panel on Climate Change [IPCC] guidelines), fuel tests and CO2 Continuous Emission Monitoring Systems (CEMS) devices on certain units. Outside the U.S., sites follow the 2007 IPCC guidelines. All facilities owned and operated by International Paper were included.

SCOPE 2: Sites follow the 2007 IPCC guidelines, and U.S. facilities use state-specific emission factors provided by the Emissions and Generation Resource Integrated Database (eGRID).

2020 GLOBAL CITIZENSHIP REPORT | 41 NOX, SO2 and Other Air Emissions Reductions Our goal of reducing air emissions includes decreasing sulfur dioxide 2020 AIR EMISSIONS (SO ), nitrous oxides (NO ) and particulate matter (PM). Energy 2 X RESULTS efficiency projects, fuel switching and increased regulatory requirements resulted in significant reductions of overall emissions 42% reduction in air emissions* from our operations. We exceeded our original Vision 2020 goal of a Vision 2020 Goal 10% reduction in air emissions, and in 2016 restated our goal to 30%. (restated in 2016): Reduce air emissions As of 2020, we have reduced SO by 54%, NO by 29% and PM by 45% 2 X (PM, SO , NO ) by 30% for an overall reduction of 42% from our 2010 baseline. 2 X

For the past five years, energy efficiency projects, regulatory requirements and fuel-switching — particularly away from coal and oil — resulted in significant reductions of other air emissions.

CALCULATION METHODOLOGY Data for air emissions are from pulp and paper mills only and are consistent with regional regulatory requirements for reporting data.

* TOTAL SO2, NOX AND PM EMISSIONS Kilograms per metric ton of production

PM NOx SO2 Total

4.57 PM NOx SO2 Total 0.71 4.23 4.08 4.07 0.64 3.95 4.57 0.59 0.65 3.71 4.23 2.01 0.62 0.71 4.08 4.07 1.92 1.88 0.59 3.95 1.85 0.64 0.59 0.65 3.71 1.81 3.422.01 0.62 1.78 3.20 0.59 0.52 1.92 2.881.88 2.771.85 GOAL 0.49 2.671.81 3.20 3.42 1.67 0.47 1.78 3.20 1.57 0.41 0.39 0.52 2.88 2.77 GOAL 1.85 1.67 1.61 1.56 1.44 1.48 1.43 0.49 2.67 3.20 1.52 1.67 0.47 1.34 1.57 0.41 0.39 1.85 1.67 1.61 1.56 1.44 1.48 1.43 1.23 1.14 1.52 0.96 0.87 0.85 1.34

1.23 1.14 2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0.96 0.87 0.85

2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Air emissions goal calculations include only pulp and paper mills. YOY data reflects changes related to acquisitions and divestments.

2020 GLOBAL CITIZENSHIP REPORT | 42 Water Stewardship Healthy watersheds and sustainable use of water resources are essential to communities, the environment and our ability to manufacture our fiber-based products. We believe that stewardship means striving to leave everything in better shape for future 2020 WATER generations — and we extend this approach to water, both within our STEWARDSHIP RESULTS operations and beyond. We are working to understand the Continued annual facility risk characteristics of each basin where we operate in order to address the assessments and launched first most important water issues for our company, local communities, partnership in a priority basin; other water users and the environment. Our water stewardship 62% of mills engaging local strategy and Vision 2030 targets reflect this context-based approach. stakeholders on water Vision 2020 Goal (restated Water is a critical input to our manufacturing process — it is used in nearly every stage from pulping wood and recovered fiber, to in 2016): Integrate water papermaking, to power generation and more. The vast majority of our management into regular facility mills use surface water as their primary source, and discharge treated assessment and proactively effluent to receiving streams. Our water use is largely non- engage with stakeholders in consumptive; we return 90% of the water we use to the environment communities to address after treatment. water-related issues within the watershed

WATER USE* Cubic meters per metric ton of production

Inﬂuent Efﬂuent

44.4 44.4 43.8 44.0 43.8 44.1 43.0 42.6 42.2 42.3 42.3

40.7 40.5 40.0 40.1 40.2 39.5 39.9 39.8 39.7 39.0 39.0

2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* All data on water use include only pulp and paper mills. YOY data reflects changes related to acquisitions and divestments.

2020 GLOBAL CITIZENSHIP REPORT | 43 WATER INFLUENT SOURCES*

Surface (83%)

Groundwater (12%) 90%

Other (5%) of water used in our mill manufacturing was returned to the environment in 2020 * All data on water use include only pulp and paper mills.

WATER STEWARDSHIP STRATEGY Our objective is to advance water stewardship in the places where we live and work and to improve the long-term sustainability of shared water resources. Our strategy is guided by three overarching principles, as informed by the World Business Council for Sustainable Development’s “CEO Guide to Water.”

PRINCIPLES OUR ACTIONS

Understand • We conduct a comprehensive facilities water risk assessment through an in-house exposure to water risk in direct methodology combining relevant internal and third-party data. Key factors include operations and supply chains the World Resource Institute’s (WRI) AqueductTM Baseline Water Stress (BWS) indicator, regulatory requirements, community relations and qualitative input from internal experts. We use this assessment to prioritize sites for water-related operational improvements and watershed protection efforts. • In 2020, three of our mills were located in basins considered to have a “high” level of baseline water stress per WRI AqueductTM, all drawing from surface sources and comprising about 8% of our mills’ total water intake. One of our mills was located in a basin considered to have “very high” levels of baseline water stress; this mill uses 100% reclaimed effluent in partnership with the local municipal utility, and comprises less than 0.5% of our mills’ total water intake.

Integrate • Our water stewardship steering team guides and supports our water stewardship water into decision making, strategy. In 2020, we formed a cross-functional task team of internal subject matter disclosure and smart investments experts to guide facility-level implementation. • We piloted a technical water management survey with five mills, covering topics such as systems, processes and culture; capital asset inventory; and true cost of water. Full enterprise rollout will take place in 2021, and the findings will inform our approach at each facility. • We report to CDP on our water strategy, risk management, financial impacts and other water-related topics. We received a score of B in 2020.

Collaborate • Our manufacturing, environmental and sustainability teams work closely with local to address shared risks and stakeholders, such as basin planning committees, to ensure responsible water use seize opportunities with water and regulatory compliance. users and key stakeholders • Beyond our manufacturing operations, we recognize that most of the available water in the world originates in forests. We also support local water resources by working with others to advance responsible forestry practices through management, conservation and restoration. • Deeper strategic collaboration with stakeholders will be an important element of our water stewardship strategy in the coming years.

2020 GLOBAL CITIZENSHIP REPORT | 44 Water Quality We work to protect water quality in mill watersheds. All of our mills are subject to strict federal and state regulations on effluent quality. The respective regulatory agencies periodically review and revise our water discharge permits to maintain local water quality standards and 2020 WATER QUALITY designated uses of the water basins in which we operate. In RESULTS compliance with these standards, we work deliberately to improve the 35% decrease in oxygen- quality of the water we discharge. Our mill teams focus on reducing depleting substances* losses to our water treatment systems, which decreases oxygen- Vision 2020 Goal: Reduce mill depleting substances and further improves watershed quality. Our water discharges of oxygen- manufacturing teams share effluent improvement best practices in depleting substances (BOD) routine sessions throughout the year. to receiving streams by 15% We hold all of our mills to the same high standards for achieving optimal discharged water treatment performance and sustainable compliance with their discharge permits. Every mill must measure and record the amount of effluents generated, identify constraints impacting its quality, and treat and discharge all effluents leaving process areas. Many of our mills are required to conduct regular water quality monitoring of receiving streams to ensure their effluents are not having a negative impact on the water basin. Technical assessments of water treatment systems by company subject matter experts identify system and operational opportunities to improve and optimize system efficiency, which improves effluent quality. Periodic regulatory and systems audits ensure sites comply with permits, regulatory rules and company-specific standards described above.

Our water quality goal was to decrease oxygen-depleting substances by 15% below our 2010 baseline by the end of 2020. We exceeded this goal by achieving a 35% reduction in 2020. Because year-to-year variability and acute system and weather-related events can affect our water discharges significantly, we closely monitor this number to ensure sustained progress.

OXYGEN-DEPLETING SUBSTANCES TO RECEIVING STREAMS* Biological oxygen demand in million kilograms

28.9

23.9 23.7 GOAL 22.7 21.5 21.9 21.5 22.2 24.6 20.7 19.5 18.9

2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Water quality goal calculations include only pulp and paper mills. The total biological oxygen demand (BOD) does not include BOD from sites that send their discharged water to publicly owned treatment works (about 2% of our total water discharge). YOY data reflects changes related to acquisitions and divestments.

2020 GLOBAL CITIZENSHIP REPORT | 45 Solid Waste Operational and regulatory standards provide a framework to reduce waste generation and waste to landfills, and to divert more material to other beneficial uses. Our EHS performance standard and program 2020 SOLID WASTE elements for solid waste ensure we meet or exceed regulatory RESULTS standards. As part of these standards, every site must identify, quantify and document all generated waste and associated hazards. 26% reduction in manufacturing All sites must reduce the amount of waste generated and ensure waste to landfills* proper management and disposal of waste. Vision 2020 Goal: Reduce manufacturing waste to landfills We have created an internal network of professionals responsible for by 30% and ultimately to zero site-specific waste management. This network meets quarterly to discuss current events, policy requirements and best practices. Some of our converting sites and mills are close to achieving a zero- manufacturing waste-to-landfill goal by stressing efficiency, beneficial use of byproducts and recycling wherever possible — but there is still progress to be made.

WASTE TO LANDFILL INTENSITY* Kilograms per metric ton of production**

48.4 49.4 49.4 45.2 47.5 41.4 38.7 40.0 39.1 GOAL 33.9

2010 2013 2014 2015 2016 2017 2018 2019 2020

WASTE BY DISPOSAL IN 2020** Land Applied Landﬁlled (26%) (44%)

Other Beneﬁcial Use (18%) Burned on Site (12%)

* YOY data reflects changes related to acquisitions and divestments. ** Solid waste goal calculations include only pulp and paper mills

2020 GLOBAL CITIZENSHIP REPORT | 46 In 2014, we established a voluntary goal to reduce manufacturing waste to landfills by 30% by the end of 2020 and ultimately divert 100% of our residual materials from landfills. With improvements in operational efficiency, we continue to reduce overall waste generated, while finding new ways to use residuals. This effort will continue as a part of our Vision 2030 Renewable Solutions goal to accelerate the transition to a low-carbon economy through innovative fiber-based products.

Although we fell short of our overall goal, we achieved a 26% reduction in 2020. A 30% reduction by the end of 2020 was ambitious because of the complexities surrounding efficient, cost-effective solutions for disposal. Periodically, our mills dredge water treatment facilities, which creates fluctuations in waste generation.

Fiber Efficiency Wood fiber is the single-largest input to the manufacturing of pulp and paper products. Addressing wood fiber efficiency helps manage costs and makes efficient use of renewable natural resources — 2020 FIBER EFFICIENCY thus reducing waste and improving the circularity of our RESULTS manufacturing processes. 0.68% fiber loss from reporting mills* Vision 2020 Goal: Reduce fiber lost in the manufacturing process In 2014, we developed a company standard to to less than 0.75%

improve performance and started to monitor * Fiber efficiency goal calculations include only progress through a global tracking system. Both pulp and paper mills. actions helped us achieve 0.68% fiber loss in 2020 with the mills reporting quality-ensured data based on a 12-month rolling average. To meet our goal, our mills focused on retaining usable fiber within our processes and reducing waste generated. We will continue to measure and track fiber efficiency performance while focusing on Take a look behind mill-specific deliberate improvements aimed at the scenes of our reducing fiber loss. responsible manufacturing process

2020 GLOBAL CITIZENSHIP REPORT | 47 Innovative, Renewable Products We create innovative, sustainable and recyclable products that help our customers achieve their objectives. The needs of our customers and the evolving demands of consumers drive our product innovation. We strive to meet those demands by using research, ingenuity and creative thinking to transform renewable resources into recyclable fiber-based products that people depend on every day.

2020 Highlights

SUSTAINABLE DESIGN From ideation to production, we focus on how we can create innovative, sustainable and recyclable solutions.

Begin with sustainably grown new fiber and add recycled fiber REPLACING PLASTIC CONTAINERS WITH CORRUGATED As featured in the Circular Bioeconomy report by the World Business Council for Sustainable Development, Develop sustainable we produce corrugated alternatives to the reusable solutions and alternatives plastic containers (RPCs) used in the wholesale produce and raw protein industries. Benefits include: • Preventing food safety concerns and streamlining logistics by eliminating the need to return empty Prototype, test and refine RPCs to wash centers. to find ways to reduce materials, weight, etc. • Eliminating ergonomic concerns with RPC machine-setup instead of hand-setup. • Saving space and emissions generated, as fewer inbound trucks to customers are required. • Serving as a revenue stream for customers because Introduce recyclable, of recyclability. sustainable, renewable products people depend on every day

HELPING CUSTOMERS MEET THEIR PACKAGING GOALS 94 North American box plants have achieved FSC® chain of custody certification, assuring customers that they contribute to responsibly sourced fiber. 100% of our box plants in Europe, the Middle East and Africa have FSC chain of custody certification.

2020 GLOBAL CITIZENSHIP REPORT | 48 PRODUCT HIGHLIGHTS

TAILORED SOLUTION, LESS WASTE FIBER-BASED ON FAST TRACK Our North American Container team recognizes Used as a sustainable alternative for products that a box must be tailored to meet each of our typically made with fossil fuel-based materials, customer’s unique needs. In 2020, we launched papergrade pulp got a boost in 2020. Both the the eCommerce Box Optimization Service (eBos) COVID-19 pandemic and a trend toward more software platform. eBos uses unique algorithms recyclables have increased demand for fiber-based to analyze eCommerce customers’ shipment fast food containers. This renewable fiber offers history and box utilization to determine the optimal strength, versatility and recyclability in the molded- box suite based on the specific products they are fiber packaging segment. shipping. The correct size allows customers to minimize packaging waste and dunnage materials, and reduce customer freight costs.

eCOMMERCE INNOVATION DESIGN ITALY — PRODUCT In 2020, our North American Papers business ECO-DESIGN AWARD launched International Paper Shop, a full- For the fourth consecutive year, International Paper service digital storefront. Designed to make received an award from the 2020 CONAI purchasing faster and simplify account International Packaging Consortium Prevention management, the online shop also provides Contest for our Tray Pack Cover, an innovative customers access to the information they need solution to transport and display ready-to-use anytime, anywhere and from any device. products. Created by the San Felice, Italy, Innovation Team, the eco-design of the Tray Pack Cover reduces the environmental impact by improving the production process and logistics and saving raw material.

2020 GLOBAL CITIZENSHIP REPORT | 49 Creating Renewable Solutions We create innovative, sustainable and recyclable products that help our customers achieve their objectives. The sustainability, health and transportation needs of our customers, as well as the evolving demands of consumers, drive our commitment to innovation. We strive to meet customer demands by using research, ingenuity and creative thinking to transform renewable resources into recyclable fiber-based products that people depend on every day.

“I need a lightweight, “I’d like my baby’s diaper “I need a responsibly made water-resistant package to be very soft, absorbent, box that protects my dog that will keep my food safe and made from treats in transit and can also cold and can be recycled.” renewable materials.” double as a retail display.”

Designing for the Circular Economy International Paper is among a growing group of companies embracing the concept of the circular economy. We seek to evolve the design of our products so that they can enjoy multiple lives through continuous cycles of recovery and reuse. We strive to eliminate waste and make the most of our renewable resources. By creating renewable solutions, we’re accelerating the transition to a low-carbon economy. Learn more about our Recycling & Beyond efforts.

THE CIRCULAR NATURE OF FIBER-BASED PRODUCTS

2020 GLOBAL CITIZENSHIP REPORT | 50 Research and Development Rigorous research and development are the key to creating innovative, renewable products. We design products and services while considering recyclability, sustainability, weight, materials and more. We work with our customers to provide solutions that meet their specific needs, such as recyclable boxes with water-resistant coatings for shipping chicken, seafood and other raw food products.

Our innovative designs can reduce transportation costs and emissions by creating innovative, lightweight packaging solutions that protect goods and enable worldwide commerce. We also teach customers how to pack boxes optimally to maximize weight, reduce shipping costs and lower emissions.

We have several research and product development facilities around the world. Our Innovation Center in Federal Way, Washington, for example, has in-house testing laboratories and pilot facilities with a world- class team of scientists, researchers and engineers. Our experts design and test innovations to help our customers differentiate and improve their everyday products.

PRODUCT SPOTLIGHT: 6 AIR PACK In eCommerce — specifically in sub-segments such as textiles, office furniture and prescription drugs — products are often packaged and shipped using plastic shrink wrap. But as society continues to shift away from single-use plastics, we presented our 6 Air Pack in our Europe, Middle East and Africa (EMEA) region as an alternative sustainable packaging solution to replace plastic bags in eCommerce shipping.

Designed by our Central Design Team in France, the 6 Air Pack is 100% recyclable and reusable. It also offers a wide range of dimensions and types of closure to adapt to and answer customers’ needs.

As we work to achieve our Vision 2030 goals, our research and development teams will play a significant role in contributing to our renewable solutions goal. This will advance circular solutions throughout the value chain and create innovative products that are 100% reusable, recyclable or compostable.

2020 GLOBAL CITIZENSHIP REPORT | 51 Product Stewardship Customer feedback allows us to strengthen relationships and create new products that meet consumer demands. Our product stewardship team leads our effort to assess the possible health and environmental risks of a product along the entire value chain. This starts with product development and continues through sourcing, manufacturing, marketing, use by the customer and eventually to disposal or recovery for recycling.

Our products must meet specific regulatory requirements of their eventual use within the countries of manufacture — and meet customer expectations regarding product safety and chemicals of concern. Complying with regulatory requirements is also critical in our choice of materials. Many of our products hold voluntary ecolabel certifications, which recognize products that meet high environmental standards throughout their life cycle. We continually monitor developments in these areas to ensure we comply with all applicable regulations. We had no incidents of non-compliance with product safety regulations or voluntary codes concerning product and service information and labeling in 2020.

Our Products

INDUSTRIAL PACKAGING We create packaging products that protect and promote goods, enable worldwide commerce and keep consumers safe. Learn more about Industrial Packaging.

Segments • eCommerce • Fruit and vegetable • Processed food and beverage • Protein • Distribution • Durable/non-durable goods

GLOBAL CELLULOSE FIBERS We produce pulp for diapers, tissue and other personal hygiene products that promote health and wellness. Learn more about Global Cellulose Fibers.

Segments • Absorbent hygiene products • Papergrade • Specialty

PAPERS We create papers that facilitate education and communication. Learn more about Papers.

End Use • Printer and copy paper • Advertising • Filing • Commercial printing • Envelopes • Specialty packaging • Book publishing • Bills and statements • Labeling

Discover 10 ways our innovative products are improving the world

2020 GLOBAL CITIZENSHIP REPORT | 52 Recycling and Beyond To create the most sustainable business model possible, we look beyond basic recycling to evaluate our entire value chain. We embrace the concept of the circular economy, beginning with championing sustainable forestry and the use of renewable resources. We seek to design waste out of our manufacturing processes by sourcing recovered fiber and making beneficial use of residual materials. Finally, we advance the recovery and reuse of fiber after consumer use.

2020 Highlights Recycling and Reducing Emissions We participate in several industry associations Through collaboration with The Recycling dedicated to increasing and sustaining Partnership, International Paper has helped corrugated box recovery rates, including: to save 230 million pounds of recyclables • American Forest & Paper Association from the landfill, resulting in 251,000 metric tons of carbon emissions avoided. • Confederation of European Paper Industries • Fibre Box Association • The Circular Economy Accelerator 55,000 plastic bottles recycled • The Recycling Partnership at our Rome Mill as part of our employees’ R4: Rome Reduce Reuse Recycle! in 2020

ANUFACTUR M ING We are among the world’s largest stewards of wood and recovered fiber

Renewable Resources

S We recover, reprocess or

R & facilitate the sale of 7 million E C N Y O C I tons of recovered fiber each year L T I P N M G U S N CO

Discard to 66% increase in recovery Landfill/ Incineration of old corrugated containers since 2010

Learn more about our efforts at Our Renewable Future.

2020 GLOBAL CITIZENSHIP REPORT | 53 Our Commitment to Circularity We go beyond recycling with our commitment to advancing the circular economy. We take action across our entire value chain by (1) championing sustainable forestry and the use of renewable resources, (2) seeking to design waste out of our manufacturing processes by sourcing recovered fiber and making beneficial use of residual materials, and (3) advancing the recovery and reuse of fiber after consumer use, extending the useful lives of natural resources and reducing materials to landfill.

We’re committed to innovating our products so that they are all reusable, recyclable or compostable and provide circular solutions that continue to promote a low-carbon economy.

Wood Fiber New fiber is needed to continue to make recycled products. Without new fiber inputs, paper producers would run out of useable recycled fiber MANUFACTURING in roughly 18 months.* Recovered fiber and new fiber are used to make new paper-based products.

REPROCESSED Cellulose fibers can be recycled up to seven times.* Beyond that, the fiber cannot be used to make new products and is considered “lost fiber.”

CONSUMPTION & USE

Lost Fiber

Fiber Cycle

POST-CONSUMER CONSUMERS FIBER & COMPANIES RECYCLE Recycled fiber can be reprocessed into new products or can be beneficially used in other ways, such as for compost or in insulation. Discard Landfill/Incinerator: • Litter SORTING • Unsorted RECYCLING • Hygiene products COLLECTION • Contaminated 89% of corrugated packaging and 66% of paper used in * Two Sides the U.S. was recovered for ** ** American Forest & Paper Association, 2020 recycling in 2020.

2020 GLOBAL CITIZENSHIP REPORT | 54 Natural Resource Stewardship We are among the world’s largest stewards of wood and recovered fiber. Making sustainable, fiber-based products requires both responsibly grown and managed new fiber as well as recycled fiber. The entire paper-making process ultimately begins in the forest. Read more about our commitment to responsible forest stewardship in The Future of Forests.

Recycling and recovered fiber use are key components of our commitment to environmental stewardship. This fiber helps extend the useful lives of natural resources and reduce materials to landfill.

Both new and recovered fiber are necessary to sustain an efficient supply chain. After several lifecycles of reuse and reprocessing, recovered fiber eventually begins to break down and is no longer suitable for use in paper and paperboard. Although this fiber can no longer be used in our products, it can be beneficially reused in many other ways, such as for energy or fertilizer. The ability to use recovered fiber would cease to exist if responsibly managed new fibers were not introduced to the fiber cycle. With high recovery rates and well-managed forests to source from, fiber-based products are among the most sustainable products in the world.

Recycling The recovery and recycling of fiber is part of our business model and plays a key role in our commitment to environmental stewardship. Globally, we recover, reprocess, reuse or facilitate the sale of more 2020 RECYCLING than seven million tons of recovered fiber each year. We are one of RESULTS the two largest users of recovered fiber in the world, using five million tons of recovered fiber each year. 66% increase in recovery of old corrugated containers (OCC) In 2010, we set our Vision 2020 goal to increase the recovery of old Vision 2020 Goal: Increase corrugated containers (OCC) by 15%. We contribute to increased fiber recovery of OCC by 15% by recovery rates by expanding our internal recovered fiber capacity, exploring new sources and working with suppliers and acquiring new sources of materials for diverting usable fiber recovery. We also work to divert additional types of paper and from landfills packaging materials from landfills.

In 2020, we continued to exceed our Vision 2020 goal with a 66% increase in OCC recovery because of operational improvements in our fiber recovery process. With this additional recovered fiber, we are now creating more end products and have better aligned our sourcing with consumption.

RECYCLING GOAL PROGRESS 66.1% 62.9% % Increase in recovery of OCC 50.3%

23.2% 16.5% GOAL 15.0% 2.9% 2010 2 011 2012 2013 2014

0.0% 2015 2016 2017 2018 2019 2020 -8.2% -12.9% -20.0% -17.3%

2020 GLOBAL CITIZENSHIP REPORT | 55 In addition to our recycling operations in the U.S. REDUCING OUR IMPACT and Mexico, globally we procure several million At International Paper, we recognize tons of pre- and post-consumer paper and paper there are measurable actions we can products for use in our facilities, including five take to improve our products’ carbon mills in North America that only use recovered footprint. One way we can do this is fiber to make our products. In 2020, the average through promoting circularity in our recycled content of our North American corrugated value chain. This starts with our packaging products was 36.3%, including 30% suppliers practicing responsible forest post-consumer fiber and 6.3% pre-consumer fiber. stewardship, which contributes to the removal of CO from the atmosphere. The use of recovered fiber is important for the 2 health of the climate and plays an important role in We also continuously work to reduce the circular, low-carbon economy. Consider that GHG emissions during manufacturing 88.8% of OCC in the U.S. was recovered and and increase the recovery and reused to create new products.* This statistic recycling of our paper-based products. indicates not only the amount of fiber being reused to create new products, but the amount of OCC being kept out of landfills. When paper decomposes in landfills, it releases methane — a powerful GHG — but recycling helps cut down on these emissions.

* American Forest & Paper Association, 2020

2020 GLOBAL CITIZENSHIP REPORT | 56 Circular Economy THE CONCEPT OF THE CIRCULAR Since the 1970s, recycling methods and culture have advanced to ECONOMY IS the point that, by 2020 as much as 65.7% of paper and 88.8% of BASED ON THREE corrugated packaging consumed in the U.S. was recycled.* Yet PRINCIPLES:** traditional notions of recycling are still rooted in the “take-make- waste” model of short consumption cycles. Recycling is just one part of the larger circularity landscape. Design out waste Our process is circular by nature, from the sourcing and regrowth 1 and pollution of our primary raw material to our use and beneficial reuse of byproducts in the manufacturing process — and finally to the recovery and reuse of our products. This circularity is core to our industry and to our existence. Keep products and materials At International Paper, we work to make the most of every tree and 2 in use the byproducts of the manufacturing process to create value and eliminate waste. For example, we use biomass residuals from the pulp-making process to supply nearly 75% of the energy used in our mills. This beneficial reuse of biomass residuals drives cost savings Regenerate while helping us shrink our carbon footprint by reducing our reliance 3 natural systems on fossil fuels.

Another way we keep products and materials in use is by selling our biomass residuals to other manufacturers to use.

EXAMPLES OF BENEFICIAL REUSE

ASH Generated from the combustion of tree bark in our boilers, ash has agronomic value. Because it contains micronutrients, farmers can use the ash to stabilize the pH of the soil.

DRY ASH Also called “fly ash,” dry ash can be used in road construction and in the manufacture of materials such as concrete blocks and bricks.

OTHER WOOD These are used to make products we use every day, such as paints, BYPRODUCTS fabrics, tires, lubricants, shampoo and even cosmetics.

International Paper’s CARPA is one of Madrid’s largest paper recyclers, collecting 11,000 tons of used paper and boxes each month to make containerboard at our Madrid Mill. With a retail customer partnership, we close the circular economy loop in Spain by delivering 1.5 million boxes each

month. By having the recycling facility close to the source, we reduce CO2 emissions, and our high-quality, waste-sorting system ensures efficiency.

* American Forest & Paper Association, 2020 ** Ellen MacArthur Foundation

2020 GLOBAL CITIZENSHIP REPORT | 57 COLLABORATING FOR THE CIRCULAR ECONOMY As with our commitment to sustaining forests, scaling the transition to a low-carbon economy requires strategic collaboration. We are committed to collaborating with suppliers and seek out those who share our commitment to quality and responsibility. We also work with industry associations and non-governmental organizations to advance recycling rates and to educate consumers on the importance of purchasing products made from renewable materials.

We participate in several industry associations dedicated to increasing and sustaining corrugated box recovery rates, including the American Forest and Paper Association (AF&PA), the Fibre Box Association (FBA), The Recycling Partnership, the Circular Economy Accelerator and Confederation of European Paper Industries (CEPI).

Further, we play an active role in the Forest Solutions Group of the World Business Council for Sustainable Development (WBCSD). Together, we are leading the transition to a low-carbon and circular economy through the development of these publications: • CEO Guide to the Circular Bioeconomy • Forest Sector SDG Roadmap • Forest Products Sector Guide to the Natural Capital Protocol

FOREST SECTOR SDG ROADMAP The forest sector is uniquely positioned to drive the transition to a low-carbon and circular future rooted in renewable, natural resources. That’s why, in 2019, International Paper and 10 leading member companies from the Forest Solutions Group (FSG) of the WBCSD issued the Forest Sector SDG Roadmap.

The roadmap helps to maximize the sector’s contributions to the UN SDGs and can unlock business opportunities that present themselves on the industry’s journey to 2030 and beyond.

In December 2020, the FSG issued the first Implementation Report of the Forest Sector SDG Roadmap. The report provides evidence of FSG members’ commitment to implementing the actions in the SDG Roadmap, takes stock of the status of implementation of the different actions among FSG members, and sets a baseline against which to track progress over time.

Learn how we’re rethinking waste to create products with circular lifecycles

2020 GLOBAL CITIZENSHIP REPORT | 58 Responsible Business Practices Responsibility underscores every action we take throughout our value chain. It starts with people — attracting and developing a talented, diverse workforce; ensuring everyone arrives home safely at the end of each day; and helping our local communities thrive. But it doesn’t end there. We deliver long-term value for all stakeholders through solid governance, a commitment to ethical business practices and proactive government relations.

2020 Highlights CREATING DIVERSE, INCLUSIVE WORKPLACES PEOPLE HIGHLIGHTS We stepped up diversity in recruiting: • 62% of our interns and co-op program OUR GOAL: INJURY-FREE hires were women and people of color. WORKPLACE • Despite the economic hardship the virus brought, we kept all summer 2020 intern and college hire commitments and continued hiring college talent on campus during the fall. of our sites operated without • We developed and formalized a Diversity 97% a serious injury. Talent Acquisition Framework for U.S. Colleges to guide our enterprise diversity efforts as we work towards accomplishing our Vision 2030 goals.

When our employees see unsafe conditions and actions, we intervene to demonstrate we care and to ensure no one is injured.

We achieved a 75% reduction in non-employee injuries in the workplace.

INVESTING IN EMPLOYEE DEVELOPMENT 2.5 Million e-Courses Completed: The COVID-19 pandemic created an opportunity to explore innovative ways to deliver skills training and leadership development in 2020. We optimized our virtual platforms to ensure employees continued to receive the best possible learning experiences.

2020 GLOBAL CITIZENSHIP REPORT | 59 Recognitions

For the 15th consecutive year, the For the fourth year in a row, Ethisphere Institute recognized International Paper earned the International Paper as one of the designation of CPA-Zicklin World’s Most Ethical Companies. Trendsetter. We’re one of 79 Of this year’s 135 honorees, companies in the S&P 500 to International Paper is one of only receive the top ranking for six companies to receive the political disclosure and recognition for 15 years running. accountability due to our voluntary reporting efforts.

Community Highlights We make sustainable investments to protect and improve the lives of our employees and mobilize our people, products and resources to address critical needs in our communities.

$23 million invested $2.4 million in employee generosity, in 2020 to address critical supporting the International Paper community needs Employee Relief Fund and the United Way. Company matching programs maximized employee giving for a total impact of more More than $165 million than $3.9 million donated since 2010

BUTTERFLY KITS NURTURE A LOVE FOR NATURE • Through a partnership with Celebrate Planet Earth, we distributed butterfly kits to 136 schools in U.S. communities, reaching 53,000 elementary students. • Through Mariposa Papilia, we expanded the program to Mexico, reaching 1,300 elementary students across five schools. • We gave an additional 4,500 butterfly kits to our essential workers to take home to their families.

2020 GLOBAL CITIZENSHIP REPORT | 60 Our People At International Paper, we are committed to investing in people, which means: • Ensuring everyone arrives home safely at the end of each day. • Attracting and developing an outstanding and diverse workforce.

We value character as much as capability. We look for employees with talent, skills, a work ethic and dedication to the principle of doing the right things, in the right ways, for the right reasons — all of the time. We foster an inclusive culture and a supportive work environment that attracts and retains the best team members — enabling them to learn, grow, collaborate and contribute to sustainable results.

We seek to foster employee well-being and performance through a development process that includes: • Engagement, health and wellness programs • Training • Business- and region-specific people councils

In 2020, we hired 6,807 new employees. We continue to build an increasingly diverse and inclusive environment to attract, develop and retain the best talent from all backgrounds and experiences. We are committed to providing a workplace free of discrimination, harassment and retaliation.

EMPLOYEES AND OTHER WORKERS As of December 31, 2020, we employed more than 48,000 people working in manufacturing, converting, sales and various office positions. Our workforce comprises: • Nearly 33,000 employees in the U.S. • More than 100 ethnicities and nationalities across 28 countries. • Approximately 18% women globally in 2020.

Workers who are legally recognized as self-employed — or individuals other than employees or supervised workers — do not perform a substantial portion of our work. We do not experience significant seasonal variations in employment.

EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS Of our 33,000 U.S. employees, approximately 24,800 were hourly, with unions representing approximately 14,000 employees — approximately 11,000 of which were represented by the United Steelworkers Union (USW).

International Paper, the USW and several other unions entered into four master agreements covering various mills and converting facilities. These master agreements cover several specific items including wages, select benefit programs, successorship, employment security and health and safety. The master agreements cover the majority of our union-represented mills and converting facilities. In addition, International Paper is party to a master agreement with District Council 2, International Brotherhood of Teamsters, covering additional converting facilities.

Individual facilities continue to have local agreements for other subjects not covered by the master agreements. If local facility agreements are not successfully negotiated at the time of expiration, under the terms of the master agreements, the local contracts will automatically renew with the same terms in effect.

2020 GLOBAL CITIZENSHIP REPORT | 61 RECOGNITIONS

Fortune Magazine Women’s Choice Award® Forbes

World’s Most Admired Best Companies to Work America’s Best Companies® 2021 for For — Millennial Women Employers for Diversity 18 years 2018-2021

Ethisphere Institute FTSE4Good Index Series Wall Street Journal

World’s Most Ethical An equity index series that 100 Most Sustainably Companies® 2021 for is designed to facilitate Managed Companies 15 consecutive years investment in companies that meet globally recognized corporate responsibility standards

OCCUPATIONAL HEALTH AND SAFETY Ensuring everyone — employees and non-employees — arrives home safely every day is our most important responsibility. In 2020, we made substantial progress in safety with 97% of our sites operating without a life-changing injury. We also worked with our contractors to achieve a 75% reduction in non- employee injuries. We remain committed to our ultimate goal of zero injuries.

We focus on achieving injury-free operations by: • Promoting accountability • Anticipating, recognizing • Maintaining an active safety and responsibility for and removing hazards. mindset at work and at home. ourselves and our colleagues. • Intervening during • Fostering a learning culture • Applying safety unsafe conditions. where we learn from events and near misses. leadership skills. • Integrating layers of • Engaging employees to use protection into our work safety leading indicators. systems and processes.

Our LIFE (Life-Changing Injury and Fatality Elimination) initiative focuses on eliminating the most serious injuries — such as concussions, fractures, burns and amputations — and implementing sustainable systems to prevent all injuries and incidents. LIFE is designed to make everyone aware of serious injury risks. To improve workplace safety, project teams use our company’s: • Manufacturing excellence tools. • Communications channels. • LIFE investigations. • Employee engagement, training and general education.

2020 GLOBAL CITIZENSHIP REPORT | 62 THE LIFE PROGRAM HAS FIVE FOCUS AREAS:

• Driver safety • Motorized equipment • Machine safeguarding • Slips, trips and falls • Exposure to harmful substances or environments

As part of our LIFE initiative, all manufacturing and non- manufacturing sites report on engagement in seven safety leading indicators to help identify areas for improvement and where resources are needed to properly execute our programs. Safety leading indicators are a proactive approach to measuring progress in 2020 SAFETY RESULTS preventative safety efforts. One leading indicator, LIFE Potential 79% reduction in serious safety Analysis, involves team members reporting near-miss events that did incidents since 2010* not result in serious injury (a LIFE incident) because the hazard was Vision 2020 Goal: recognized before a potential injury occurred. Injury-free workplace

* Safety goal calculations include data on both International Paper employees and contractors. We began collecting safety data on contractors in 2012.

LIFEIFE PrProjoject Plan Hazard Execution Recognition & Mitigation

Safeetyy LeadershipLeadersLeadershihip Trainiainingng & ContinuiContinuingng SAFETY LIFEIFE Potential Analysis Cererti cation LEADING INDICATORS

Safee Work Obsere vatitiono 5S Performancemance & Engagementgageme

ContrContrntractor SafSafetetyy

2020 GLOBAL CITIZENSHIP REPORT | 63 TYPES OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS While we continue to make progress in safety, we have more work to do to achieve injury-free operations. To improve, we have a uniform global operations incident reporting process that uses the U.S. Occupational Safety and Health Administration (OSHA) recordkeeping standards as general guidelines.

LIFE INCIDENTS IN 2020 Employee + Contractor #’s International Paper Number of fatalities for directly employed 3 Employees 57 Contractors Number of fatalities for contractors 0 0.32 0.32 0.30 45 0.29 0.27 Number of lost time accidents 174 0.25 0.24 0.24 0.23 0.22

Frequency Rate* 1.58 28 28 28 0.18 21 16 16 Severity Rate** 66.45 14 12 11 10 11 8 7 5 4 1 * Frequency Lost Time Accidents: lost time accidents x 1,000,000/hours worked ** Severity Rate: total number of days lost x 1,000,000/hours worked 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

LOST WORKDAY INCIDENT RATE* TOTAL INCIDENT RATE*

57 0.32 0.32 0.30 1.18 45 0.29 0.27 1.02 0.25 0.94 0.97 0.95 0.24 0.24 0.23 0.93 0.92 0.91 0.22 0.83 0.86 0.86 28 28 28 0.18

21 16 16 14 12 11 10 11 8 7 5 4 1

2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* Lost Workday Incident Rate is an approximate number of injuries or illnesses * Total Incident Rate is an approximate number of injuries or illnesses requiring per 100 workers per year. medical treatment beyond first aid per 100 workers per year.

2020 GLOBAL CITIZENSHIP REPORT | 64 DIVERSITY AND INCLUSION We strive to promote a culture of inclusion where individuals feel respected, are treated fairly and have an opportunity to do their best work every day. Diversity and inclusion are key to our sustainability strategy — we believe that a diverse workforce and inclusive culture will help us create long-term value.

We take a broad view of diversity and inclusion by going beyond racial and gender diversity. Culture, background, experience, religion, thoughts, sexual orientation, personality and communication represent the diversity of our workforce.

We are a company with an extensive manufacturing footprint. Creating a diverse and inclusive culture is essential because it: • Enables our colleagues to • Helps make International Paper • Promotes innovation, contribute their best. a better company for our increased team dynamics employees, customers, and productivity. • Harnesses different thoughts, communities and investors. skills, talents and experiences to produce innovative solutions.

Our Chief Diversity Officer (CDO) guides our progress to expand our efforts to attract, develop and retain the best talent — while strengthening our culture of inclusion throughout the organization. Under the leadership of our CDO, our diversity and inclusion framework supports a strategy for influencing our workforce, workplace and marketplace. Establishing champions across our various business groups ensures we effectively achieve our plan of action.

“ An inclusive workplace where all employees are included, valued and treated with dignity and respect is not only fundamental to our future success, but it is aligned with The IP Way.”

— Fred Towler, chief diversity officer and vice president, Human Resources, Global Talent Management, International Paper

Our diversity and inclusion efforts encompass:

• Workforce — our employee • Workplace — the on-site and • Marketplace — all our population, including our talent off-site environment that exists stakeholders and how management process to provide an engaging and they view us as a inclusive workplace for responsible employer our employees

We expect all employees — not just leaders — to build and sustain a work environment that embraces individuality and collaboration to drive exceptional results. We are committed to providing a workplace free of discrimination, harassment and retaliation regardless of race, ethnicity, color, religion, sex, sexual orientation, marital status, age, disability, gender identity or expression, genetic information, national origin, military or veteran status or any other classification protected by law.

2020 GLOBAL CITIZENSHIP REPORT | 65 EMPLOYEE NETWORKING CIRCLES In 2020, we successfully launched our first Employee Networking Circles (ENCs). These are voluntary, company-sponsored employee groups that contribute to an engaged, inclusive and collaborative workplace. These open and inclusive groups: • Build employee connections and engagement across the organization. • Promote understanding of common attributes and differences. • Support the three diversity and inclusion strategic pillars: workforce, workplace and marketplace.

Our 2020 launch of our first ENCs included: • IPride — This group comprises LGBTQ+ identified individuals and allies. • IP Vets — This group is dedicated to creating a corporate culture that promotes visibility, recruitment, retention and knowledge of veterans of the armed forces of their respective countries. • IPMOVE — Also known as the African American Employee Networking Circle, this group seeks to attract, develop and retain African American team members while creating opportunities for mentoring, volunteering and engagement. • Women in IP — This group seeks to attract, develop, promote and retain women employees.

DIVERSITY HONORS

The Society of American Foresters (SAF) recognized Alex Singleton, fiber supply manager at our Rome, Ga., Containerboard Mill, with the Diversity Leadership Award. SAF honored Alex for his involvement in promoting forestry to young, underserved minorities and his volunteer efforts for the Center for Heirs’ Property Preservation, which has helped more than 430 families that collectively own 22,000 acres of land.

Cindy Hendren, Henderson Mill manager, began serving as the first female president of the North Carolina State University Pulp and Paper Advisory Board. Cindy shares her vision for keeping diversity at the forefront to continue strengthening the paper industry and program.

IMPROVING INCLUSION IN BRAZIL

• Our Respect Generates Respect diversity and inclusion program launched the “Conversation Circle,” opportunities for our team to share their perspectives on DE&I topics in small groups. • We performed 191 Accessibility Mapping analyses across three mills to help leadership understand what changes should be made to accommodate the diverse needs of both men and women in our manufacturing environment.

2020 GLOBAL CITIZENSHIP REPORT | 66 DIVERSITY IN COLLEGE RECRUITING REACH (Recruit, Engage, Align College Hires) is our college recruiting and development program for college graduates of manufacturing engineering programs. Engineers at International Paper work at the heart of our business – managing people, processes, reliability and facility assets. More than a dedicated training program, REACH enables new graduates to work in a value-added role at a manufacturing facility while participating in a required core curriculum that builds technical and leadership competencies.

As part of our commitment to create diverse and inclusive workplaces, we have made strides in increasing representation of women engineers in our REACH program. In a field where women represent only 13% of engineers*, 38% of International Paper’s REACH Class of 2021 — who started the program in 2020 — represent women engineers. In the same REACH class, our overall full-time diversity hiring is 52%.

EMPLOYEE ENGAGEMENT We recognize that our success is dependent on how we perform as a team. A highly engaged culture leads to better safety and business success. For 20 years, International Paper has requested employee feedback on our workplace culture using an engagement survey.

In a focused effort to enhance performance, maximize engagement and retain talent, we created a customized survey called MyView, which is administered every 18 months. In our most recent MyView survey, 92% of our global employees responded.

The strategic nature of the MyView Employee Engagement Survey allows us to measure important factors that affect engagement — how employees feel about their work environment, the people they work with and the company’s vision. MyView gives employees the opportunity to confidentially share their views on specific areas that drive engagement, allowing detailed, actionable feedback with clear direction on how to improve engagement.

Sharing feedback about our experiences working at International Paper is just the first step. The second and equally important step is acting on the feedback. Across the world, International Paper leaders and their teams review team-specific survey results and work together to develop engagement action plans. These plans result in employees who are satisfied, motivated and committed advocates of International Paper — employees who are Proud to Be IP.

The MyView results combined with the engagement planning process provide all employees the opportunity to make a positive impact on safety, operations, commercial excellence, sustainability and financial performance — while building a strong sense of community.

Together, people leaders and their teams are working to continuously improve the employee experience, increase engagement and drive improved business results.

* Society for Women Engineers, 2020

2020 GLOBAL CITIZENSHIP REPORT | 67 COMPENSATION AND BENEFITS FOR FULL-TIME EMPLOYEES We view compensation and benefits as an investment in our people. Our rewards programs are designed to attract, engage and retain a talented workforce by rewarding performance while ensuring competitiveness in our local markets around the world.

We continually evaluate our compensation and benefits so that we offer best-in-class programs and remain the employer of choice in the areas we operate.

EMPLOYEE DEVELOPMENT We believe our greatest competitive advantage is our people. That’s why we strive to unleash every person’s full potential by attracting, developing, retaining and inspiring all employees. We are committed to developing, promoting and supporting employees at all levels.

Employee development is based on each employee’s interests and capabilities as well as the needs of our company. We provide training and resources that deliver continuous learning and development opportunities. Both mandatory and voluntary training help our employees develop new skills, expand upon existing knowledge and benefit from coaching and advice.

TRAINING, EDUCATION AND LEADERSHIP DEVELOPMENT PROGRAMS We conduct extensive training and development programs worldwide. Our commitment to employee development is visible in our e-learning library, our leadership development programs, new hire onboarding programs and our support of individual academic pursuits.

E-Learning System Our MyLearning learning management system is a foundational part of our training and development efforts, providing all employees access to on-demand courses online, resulting in the following utilization in 2020:

• 1.5 million new e-course registrations • Nearly 2,500 new e-courses developed • 2.5 million e-courses completed

The COVID-19 pandemic created an opportunity to explore innovative ways to deliver skills training and leadership development in 2020. Virtual platforms such as MyLearning were optimized to ensure employees continued to receive the best possible learning experiences — ranging from New Hire Orientation and onboarding, to essential skills designed to improve the way our employees think and work together.

International Paper remains committed to its investment in employee development by utilizing multi-channel learning strategies that are tech-enabled, cost-efficient, inclusive and high quality.

Global Manufacturing Training Initiative We will experience a high rate of attrition within the next decade because many of our employees will be reaching retirement age. In response to this, we created the Global Manufacturing Training Initiative (GMTI), an enterprise-wide effort that encompasses the standardized and structured manner in which hourly operations and maintenance employees are on-boarded, coached, trained and certified for positions in our mills. This comprehensive, strategic program develops technical and non-technical competence resulting in a high-performing, skilled workforce prepared for the future of the organization.

Finance Training Initiative As digital capabilities increase, the skills required and career paths for finance professionals are changing. Finance LEAD | Learn, Engage and Develop is the roadmap to the development of finance professionals. Disruptive technologies increase the need for critical thinking, data analytics, leadership and business partnering skills. Through a structured program, using a blended learning approach, Finance LEAD provides finance colleagues with tools needed to succeed in their current and future roles. By building knowledge in foundations of finance and creating a common vision for data analytics roles and skills, we will prepare the Finance department for 2030.

2020 GLOBAL CITIZENSHIP REPORT | 68 Tuition Reimbursement Our education assistance program provides financial support to employees who want to broaden their knowledge base, develop further professional skills and take external classes to prepare for other positions within International Paper.

Student Loan Assistance College recruiting is an important component of our talent acquisition strategy. Since 2017, we have offered student loan assistance up to $9,000 to help employees repay outstanding qualified student loans. In 2020, more than 1,100 employees took advantage of this program.

C THE INTERNATIONAL PAPER Y A IT T LEADERSHIP MODEL IL Te chnical & Lead by Example A Functional Skills B L Shape the Future Y Leadership development is an A Competencies Enable Change S P ongoing process that requires T Develop People A commitment and active Experiences C & Assignments 4 Encourage Others participation. The International Paper Leadership Model guides E all employees by focusing on three essential leadership Ethics and Integrity Safety as a Core Value • Care for Others components — character, Commitment to Excellence • Attitude that Energizes and Inspires capability and catalyst. Agile Learner ••Ownership, Responsibility and Accountability Team Player

C HARACTER

Leadership Institute Our Leadership Institute provides learning experiences to build character, capability and catalyst behaviors in current and future company leaders. The Institute offers programs and resources that align with our key business strategies, while promoting leadership development through skills development, assessment, feedback and coaching.

Typically, the Leadership Institute arranges and facilitates multi-day immersive experiential programs. The COVID-19 pandemic gave the Leadership Institute the opportunity to test and refine leadership development programming using virtual delivery tools. In 2020, the Leadership Institute hosted monthly Leadership Forward podcasts, bi-monthly Leadership Chats and introduced four new programs designed specifically for virtual platforms. In total, 120 leaders participated in eight sessions of live online programming, including an online business simulation.

Since launching the Leadership Institute in 2005, more than 5,000 employees have participated in programs designed to build management skills and leadership capacity.

International Paper Leadership I and International Paper Leadership II Our leaders are responsible for supervising teams of employees across our manufacturing enterprise. The International Paper Leadership I and II blended learning programs are available in nine languages; these programs equip new and experienced first and second level leaders with core and advanced leadership skills they need to build and retain an engaged team, develop skills and enable an inclusive culture. In 2020, 43 First Line Leaders completed International Paper Leadership I. Plus, 53 First Line Leaders enrolled in the International Paper Leadership II program in 2020, with program completion set for 2021.

2020 GLOBAL CITIZENSHIP REPORT | 69 PERFORMANCE AND CAREER DEVELOPMENT REVIEWS We conduct annual performance reviews of employees at all levels to guide decisions relating to compensation and rewards.

Our performance management system links the individual goals of our salaried workforce with organizational performance. This process involves annual performance reviews, calibration of talent and allocation of performance rewards and promotions. Throughout the year, managers provide employees with ongoing feedback, coaching, training and on-the-job development.

In addition, our 360º review process allows employees to receive feedback on specific skills from internal and external colleagues, followed by professional coaching with trained facilitators who help devise development plans based on the results. Employees and managers work together to create employee development plans, enabling managers to discuss performance strengths and development opportunities with each of their employees.

Our Communities We continue to be a force for good in our communities. We make sustainable investments to protect and improve the lives of our employees and mobilize our people, products and resources to address critical needs in the communities where we live and work.

COMMUNITY ENGAGEMENT AND GIVING STRATEGY Every community has a unique set of critical needs. Understanding these needs is key to creating value for generations to come. That is why a robust community engagement strategy is central to the success of our sustainability strategy.

Our community engagement and giving strategy enables us to provide volunteers, product donations and financial contributions to organizations that address critical needs in the communities where our employees live and work.

Our global community engagement strategy focuses on four signature causes: • Education —The future of our communities depends on the children, and therefore, we support strategic partners that focus on helping children succeed via a comprehensive approach to education. Literacy, particularly from birth through third grade, is our primary focus because reading skills form the foundation for all childhood learning. • Hunger — We work with food banks and other agencies to address hunger and food security for children, families and seniors. These organizations provide meals, access to healthy foods and other programs in the communities where our employees live and work. • Health and Wellness — We engage our employees and work with agencies to promote healthy living habits and achieve measurable improvements in health and wellness. • Disaster Relief — We partner with agencies to help communities prepare for and recover from natural disasters, and we use our Employee Relief Fund to support our affected colleagues.

Because every community is different, we provide support for other critical needs in our local communities. International Paper personnel at our facilities are tasked with ensuring that monetary donations (including grants from the International Paper Foundation in the U.S.), in-kind donations and volunteers are allocated based on the most critical needs.

We are committed to leading the world in responsible forest stewardship and to promoting the long-term sustainability of natural capital. Our community engagement and giving strategy bolsters this commitment by also supporting organizations that are making a difference in forest, water, air and responsible sourcing issues.

We execute our community engagement and giving strategy through a combination of locally-driven support, grant funding and national and global collaborations.

2020 GLOBAL CITIZENSHIP REPORT | 70 In 2020, International Paper contributed more than $23 million worldwide to support charitable organizations aligned with our signature causes. Our employees donated an additional $2.4 million, and our various company-matching programs maximized employee giving for a total impact of more than $3.9 million.

LOCAL COMMUNITY ENGAGEMENT AND GIVING We provide a wide array of volunteer opportunities and celebrate the contributions our employees make in their communities. Employees at all levels dedicate their time, talents and energy to making positive impacts. In addition to one-time activities, employees lend their professional expertise by volunteering on non-profit boards in their communities.

In 2018, we launched the MyImPact platform in the U.S. and Canada to coordinate volunteer events and programs, conduct giving campaigns and measure and report the collective impact in our communities.

In-kind contributions, donations and grants are generally only considered in the communities where International Paper has a significant employee presence and within a locally determined radius of facility operations. The International Paper Foundation has a long history of allocating grant funding to each of our U.S. facilities to bolster local community engagement efforts. Regional giving structures are in place to ensure that our large employee populations in other parts of the world also have adequate funding and governance to support local community needs. Learn more about our Giving Structure and Governance.

CONNECTING EMPLOYEES IN URBAN CENTERS We have a number of small North American Container facilities clustered around large metropolitan areas. In an effort to align giving for the greatest impact and to engage employees in their local communities, we developed an “urban cluster” model in these large cities. Each urban cluster works together to mobilize our employee volunteers, products and their giving budget to identify community engagement opportunities in Atlanta, Chicago, Dallas, Indianapolis, Los Angeles, Minneapolis-St. Paul, Portland and St. Louis.

2020 GLOBAL CITIZENSHIP REPORT | 71 NATIONAL AND GLOBAL COLLABORATIONS

While we continue to help our communities through grant funding and partnerships with local organizations, our strategic support of national and global organizations broadens our reach in our four signature causes.

STRATEGIC COLLABORATIONS

Read more about each of these collaborations and all of our External Initiatives.

2020 GLOBAL CITIZENSHIP REPORT | 72 EMPLOYEE RELIEF FUND When a crisis occurs, our employees rise to the occasion to help their fellow workers and communities. In 2001, we created the International 2020 COMMUNITY Paper Employee Relief Fund (ERF) to support ENGAGEMENT RESULTS International Paper employees who are impacted by a natural disaster or personal emergency by More than $165 million donated to charitable providing cash for basic needs such as food, organizations since 2010, including more than medicine, clothing and shelter. In the past six $23 million in 2020 years, the ERF and International Paper have Vision 2020 Goal: Measure and report on our provided more than $3.5 million to over charitable support for hunger, education, health 3,000 employees recovering from disasters and wellness and disaster relief in the communities such as home fires and hurricanes. where we operate

COMMUNITY ADVISORY COUNCILS Our Community Advisory Councils (CAC) ensure ongoing communication between our operations and area residents. They serve as forums to allow communities to ask questions, receive answers, air grievances and learn more about the company’s operations and community involvement efforts.

While CAC members often become supporters of International Paper, this is not the purpose of a CAC. Members are encouraged to ask hard questions, provide positive and constructive feedback and help the operating site build a better relationship with the community. Communication leads to positive change.

MONITORING AND ASSESSING IMPACT We believe that our company cannot succeed if our communities cannot succeed, so when assessing projects, we measure success by the impact to the community and beneficiaries.

We require our nonprofit grant recipients to provide impact reports on activities completed and project outcomes at the conclusion of the grant period. At a minimum, the organizations must report on the following, if applicable to the proposed program/project:

• Progress against intended objectives, outputs • Explanation if objectives were not met and outcomes (as proposed in the organization’s • Status update on funds expended grant application) • Qualitative data

Governance We believe in sound corporate governance. Our board of directors, chief executive officer and senior lead teams — comprising selected officers and the appointed officers of the company — promote our sustainability strategy. We incorporate environmental, social and governance (ESG) considerations into our everyday processes. This ensures we adequately address risks, operate sustainably and responsibly and create long-term value.

The International Paper board of directors upholds the company mission. The board also ensures effective organizational planning, focusing on strategy and risk management while monitoring strategic initiatives. Our board-adopted corporate governance guidelines state that effective corporate governance requires the board to exercise oversight of the company’s strategic, operational, financial, compliance and legal risks.

The Public Policy and Environment Committee of the board of directors has overall responsibility for global citizenship at International Paper. It reviews public policy, legal, health and safety, technology, environmental and sustainability issues. The board’s Governance Committee also has oversight of certain public policy and sustainability matters. Internal performance evaluations of the full board and its committees are conducted annually.

2020 GLOBAL CITIZENSHIP REPORT | 73 The senior vice president of human resources and global citizenship chairs our global citizenship council, which guides the company’s sustainability and community engagement strategies, and monitors progress. Led by the vice president of global citizenship, our global citizenship department has primary responsibility for executing strategy as well as overseeing communications and corporate marketing.

Our sustainability, human resources and sourcing departments handle the operational management of sustainability in their given areas. This work is supported by the global citizenship working group, a cross-functional team led by our chief sustainability officer with members from each of our businesses, as well as representatives from communications, legal, EHS, government relations and other staff functions. Meeting quarterly, the working group drives global citizenship initiatives throughout the company, shares best practices and provides insights to the global citizenship council.

Designated staff at the corporate, business and facility levels help identify, prioritize and manage global citizenship-related risks and opportunities. Key units such as fiber supply, logistics and sourcing have sustainability experts to support their operations. Business leaders are responsible for planning and managing business-specific global citizenship priorities.

GLOBAL CITIZENSHIP GOVERNANCE AT INTERNATIONAL PAPER

Chairman and Board of Directors (BOD)

Global Citizenship Vision and Oversight

BOD Committees

Audit and Finance, Governance, Management Development and Compensation, Public Policy and Environment

CEO and Senior Lead Team

Global Citizenship Strategy and Leadership

Environment, Health and Safety (EHS) Council Global Citizenship Council

Set Metrics, Develop Goals, Compliance and Progress Set Metrics, Develop Goals, Compliance and Progress

Global Citizenship Global EHS Lead Team Global Citizenship Lead Team Working Group

Manage EHS Function Cross-Functional Focus on Best Cross-Functional and Set Global Standards Practices for Global Citizenship Input and Support

2020 GLOBAL CITIZENSHIP REPORT | 74 DIVERSITY OF GOVERNANCE BODIES Our board of directors and its Governance Committee have assembled a board of experienced individuals who: • Are currently, or have recently been, leaders of major companies and institutions. • Are independent thinkers. • Have a diverse range of expertise and skills that they bring to the boardroom.

The board, through its Governance Committee, seeks to have a group of directors with a mix of backgrounds, experiences and tenure — all of which will enhance the quality of its deliberations and decisions, as well as provide a blend of institutional knowledge and fresh perspective.

The criteria considered by the board and the Governance Committee include a person’s skills, current and previous occupations, other board memberships and professional experiences in the context of the current needs of the board.

The Governance Committee Charter specifically directs the committee to seek qualified candidates with diverse backgrounds including, but not limited to, such factors as race, gender and ethnicity. While the company does not have a formal policy on board diversity, the Governance Committee actively considers diversity in the recruitment and nomination of directors. The current composition of our board reflects those efforts and the importance of diversity to the board.

The satisfaction of all director qualifications, objectives and other criteria is implemented and assessed through ongoing consideration of directors and nominees: • By the Governance Committee and the board. • Through the board’s annual self-evaluation process.

Our board believes that its membership should include individuals with a diverse background in the broadest sense. The board is particularly interested in maintaining a mix of skills and experience among its members that includes the following:

Technology Public Policy - Environmental Public Service - Leadership Role Affairs and - International - Sustainability Accounting and Finance Operations Senior Management - - - - Marketing Strategic Planning Manufacturing Supply Chain

Review our Director Qualification Criteria and Independence Standards.

Learn more on our Diversity of Governance Bodies.

2020 GLOBAL CITIZENSHIP REPORT | 75 Global Ethics and Compliance At International Paper, we believe our reputation and success depend on the daily actions and personal accountability of every employee and business partner. We do the right things, in the right ways, for the right reasons, all of the time — this is The IP Way. Together, The IP Way and our Core Values — Safety, Ethics and Stewardship — serve as our guideposts as we carry out our mission.

SAFETY ETHICS STEWARDSHIP

Above all, we care We act honestly and We are responsible stewards of about people. We look operate with integrity people and communities, natural out for each other to and respect. We promote resources and capital. We strive ensure everyone a culture of openness to leave everything in better returns home safely. and accountability. shape for future generations.

The International Paper global ethics and compliance program promotes our culture of ethics, integrity, dignity, respect and compliance with applicable laws and standards in all regions where we operate. The program provides direction, guidance and resources to help our employees and all stakeholders understand our ethical expectations. The program also supports our efforts to conduct our operations in a sustainable and responsible manner by developing policies, training programs and other guidance materials for our employees and third parties with which we do business.

Our compliance and ethics program is the responsibility of the senior vice president, general counsel and corporate secretary, and is directed by the chief ethics and compliance officer, who leads our global ethics and compliance office. The audit and finance committee of the board of directors oversees the compliance program, and the chief ethics and compliance officer has direct access to the committee.

COMPLIANCE APPROACH

RISK-BASED APPROACH We apply a risk-based approach to manage our compliance risks. We incorporate environmental, social and governance considerations into our everyday processes to ensure we adequately address risks, operate sustainably and responsibly and create long-term value.

CODES OF CONDUCT The International Paper Code of Conduct lays the groundwork for how we treat our customers, investors, suppliers, communities and each other in our operations around the world. The principles in our Code of Conduct are supported by policies and best-practice processes that help prevent illegal or unethical conduct, and assess, monitor and mitigate potential risks. All International Paper employees and our board of directors are subject to our Code of Conduct and policies. The board approves each version of the company’s Code of Conduct as well as receives periodic updates on ethics and compliance matters, including policy updates. The Code of Conduct is available in multiple languages across our operations and to the public online.

Our Third Party Code of Conduct (TPCOC) sets the expectations of ethical and legal conduct for all third parties with whom we do business.

CORPORATE COMPLIANCE POLICIES International Paper holds its own employees to the highest standards. Our Code of Conduct and our company policies provide guidance to our employees on potential conflicts of interest and gifts/hospitality situations that expose them to corruption risks or the appearance of inappropriate conduct.

We require employees to abide by travel, gift and expense policies designed to prevent even the appearance of impropriety in dealings with government officials. International Paper similarly holds third parties to the same standards.

2020 GLOBAL CITIZENSHIP REPORT | 76 TRAINING Ethics training is mandatory for all full-time, salaried employees. Job-specific training addresses respective business risks. Training covers topics such as compliance with the U.S. Foreign Corrupt Practices Act (FCPA) and other anti-corruption standards; antitrust and competition law; fair labor practices; conflicts of interest; records management; data privacy and insider trading. We provide ethics and compliance training tailored to the needs of each region.

We train all full-time, salaried employees on the International Paper Code of Conduct and compliance policies, with refresher training conducted periodically. Our training process includes: • Education of employees through periodic internal messaging. • Training conducted on our internal learning management system. • In-person trainings conducted by members of the legal department, the ethics and compliance office and occasionally outside legal counsel.

ANTI-CORRUPTION International Paper is subject to the U.S. FCPA and anti-corruption regulations of other regions. We honor all applicable laws and treaties wherever we operate, and we expect the same of our business partners.

We conduct risk assessments, which include a focus on corruption, procurement fraud and aspects of business where we directly interact with government officials. Regional risk assessments account for variations in geographic location, specific government interaction and local laws.

We have established due diligence processes, internal control procedures and financial safeguards to maintain accurate books and records. In addition, we provide training to our employees on anti-corruption and other related topics.

CONFLICTS OF INTEREST We train our employees to recognize and avoid conflicts of interest (COIs), and we plainly address COIs in our Code of Conduct and COI policy. We have a mandatory, ongoing disclosure process whereby employees identify actual or potential conflicts of interest. In addition to our structured disclosure process, we solicit ad hoc COI disclosures, monitor for risk-based conflicts and roll out periodic COI awareness campaigns company-wide. We review each disclosure carefully to ensure it is appropriately managed or the conflict is removed.

DATA PRIVACY Our global ethics and compliance office leads the company’s data privacy program. We follow data privacy laws, and regulatory requirements to safeguard information about individuals. We also have records and information management policies and procedures. These ensure we maintain, store and — when appropriate — destroy company records in compliance with legal and regulatory requirements as well as the company’s needs.

2020 GLOBAL CITIZENSHIP REPORT | 77 ENVIRONMENTAL COMPLIANCE Our Environmental Health and Safety (EHS) Management System Performance Standard and our Environmental Management System (EMS) Program Elements standardize a basic set of 13 minimum expectations for all our mills. These include, among others, risk identification, goal and metric tracking, documentation, training, evaluation, community outreach and records management. Our continuous EHS audit process is responsible for identifying areas of nonconformance with the EMS requirements.

We hold our leaders responsible to ensure: • Compliance with all applicable laws and regulations. • Compliance with global environment, health and safety management systems and performance standards. • Transparent reporting of our metrics and progress relative to our commitments.

We are subject to extensive federal, state and international environmental regulations. Our primary objectives include: • Improving and controlling emissions and discharges from our facilities to avoid adverse impacts on the environment. • Complying with applicable laws and regulations.

Our environmental expenditures include, among other areas, those related to air and water quality, waste disposal and the cleanup of contaminated soil and groundwater — including federal and state remediation matters in which International Paper has been identified as a potentially responsible party (PRP). Many of the remediation matters involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. For more information on environmental and legal proceedings, please see Note 14 in our 2020 Annual Performance Summary.

HELPLINE AND REPORTING PROCESS

RAISING A CONCERN We do not tolerate violations of our Code of Conduct, our policies or any conduct that is illegal or unethical. Anyone who becomes aware of or suspects a violation is expected to report it. We encourage employees who need help or advice to speak with their supervisors. Employees are not required to follow any particular chain of command to report a concern. Depending on the concern, employees are encouraged to contact any trusted manager, a human resources representative, the global ethics and compliance office, the legal department, a member of internal audit or enterprise security management.

USING THE HELPLINE Employees can always contact the International Paper HelpLine, which offers a confidential method for seeking advice and reporting concerns. Our HelpLine is available to employees and, where permitted, contractors, customers, suppliers and the general public. With our HelpLine, anyone can raise concerns about potential legal violations or other unethical conduct at our company or in our supply chain.

Where permitted by law, anonymous reports may be made to the HelpLine by phone or at EthicsIP.com. Our HelpLine is managed by a third-party vendor and is accessible 24 hours a day, seven days a week, 365 days a year. We provide HelpLine awareness through our Code of Conduct, training, posters, internet and intranet websites, internal newsletters and other promotional materials.

We take all reports seriously and investigate each allegation. We have a strict no-retaliation policy so employees can make good-faith reports without fear of negative repercussions. Our expectations of employees when conducting business and our reporting standards and procedures are detailed in our Speak Up! Ethical Business Conduct policy.

2020 GLOBAL CITIZENSHIP REPORT | 78 HOW THE HELPLINE WORKS International Paper provides a confidential HelpLine for employees and, where permitted, contractors, business partners and the general public. Subject to local laws, they can raise concerns about illegal activities or unethical behavior, including any violations or suspected violations of the law and, in many locations, the Code of Conduct or any company policy.

You report a concern to the HelpLine by telephone or through EthicsIP.com. 1 In many locations, you do not have to give your name if you don’t want to.

2 Reports go to the Ethics office for investigation and resolution.

We look into every report. During the investigation process, if you have given your 3 name, an investigator may interview you, along with others.

If we uncover a violation of the law, the Code or any company policy, or weakness 4 in a company process or policy, we will address it.

You may follow up on your report by phone or online. International Paper prohibits 5 retaliation against anyone who makes a report in good faith, even if no violation has actually occurred.

THIRD PARTY PARTNERSHIPS We have detailed global sourcing processes that include screening third parties for a wide variety of risks. We seriously consider the results of those assessments and manage risks appropriately. We communicate our expectations for ethical supplier behavior through our Third Party Code of Conduct, which specifically prohibits improper payments as well as offering gifts, favors or entertainment where they are intended to obligate the receiver. We also require compliance with all applicable laws and treaties.

Government Relations

PUBLIC POLICY We believe that public policy and legislation have a significant impact on our success. We stay informed on significant domestic and foreign policies such as energy, environment, recycling, supply chain, tax, trade, transportation and others. We have a government relations team in Washington, D.C., various state capitals across the U.S. and in other countries where we operate. We regularly meet with public officials and policy makers and engage trade and business associations, customers, suppliers, employees, communities and non-governmental organizations on issues of mutual concern.

Learn more about our positions on policy issues.

2020 GLOBAL CITIZENSHIP REPORT | 79 2020 PUBLIC POLICY FOCUS AREAS

ENERGY DIVERSITY BIOMASS RESIDUALS RECYCLING AND EFFICIENCY CARBON NEUTRALITY As one of the world’s largest recyclers of We support policies that promote energy Biomass energy is integral to manufacturing paper and corrugated packaging, we focus on diversity and economic development, our products and biomass residuals are the ensuring that legislation does not hinder our consistent with our principles of primary source of energy in our mills. We urge ability to collect, market or process responsible, efficient and sustainable use policymakers to recognize our biomass use as recycled materials. of natural resources. carbon neutral and sustainable forest management as an important lever for mitigating climate change through carbon storage in forests and products.

GLOBAL TRADE CORPORATE TAX REFORM INFRASTRUCTURE As a major exporter of packaging, pulp and We believe that government corporate tax We support government and private paper, we have a long history of support policy should create and sustain long-term investments to upgrade energy, water and for global rules-based trade agreements economic growth. transportation infrastructure where that provide substantive economic we operate. benefits, strong enforcement and greater market access for our products. We support the United States-Mexico-Canada Agreement (USMCA) that went into effect in July 2020.

COMBATING ILLEGAL TRANSPORTATION EXTENDED PRODUCER LOGGING As a leading shipper of freight, we support RESPONSIBILITY policies that make our truck, port and rail We are a strong proponent of global efforts We are committed to market-driven paper and shipments more efficient and competitive. to suppress illegal logging and trade. We paper-based packaging recovery and recycling support the forest sustainability language efforts. We oppose government mandates that included in USMCA and will work to ensure hold producers financially responsible for the inclusion of similar language in future managing waste from products sold or that trade agreements. require manufacturers to take back products and packaging introduced into the marketplace.

POSTAL REFORM PRODUCT BANS WORKFORCE A healthy, vibrant U.S. Postal Service We oppose policies that limit consumer choice We support diversity and inclusion as well as (USPS) is important to our industry. by placing a ban or fee on paper products. efforts at both the state and federal levels of Significant reforms are critically needed to government to focus on, fund and implement improve USPS’s balance sheet. We want to programs that address workforce education, ensure that service standards and the the skills gap and training opportunities. predictability and stability of postage rates are critical components of postal reform.

POLITICAL CONTRIBUTIONS We sponsor the International Paper Political Action Committee (IP-PAC) in the U.S., which allows eligible employees to voluntarily support political candidates and committees. All IP-PAC reports are available on the Federal Election Commission website.

The Center for Political Accountability publishes an annual report called the CPA-Zicklin Index of Corporate Political Disclosure and Accountability that measures the political transparency and oversight practices of the entire S&P 500. For the fourth year in a row, International Paper earned the designation of CPA-Zicklin Trendsetter. We are also one of 79 companies in the S&P 500 to receive the top ranking for political disclosure and accountability due to our voluntary reporting efforts.

We also publish a voluntary report of political contributions on a semi-annual basis. Learn more about contribution information. Explore our positive impact on people and communities around the world.

2020 GLOBAL CITIZENSHIP REPORT | 80 Appendix

CONTENTS Engagement Method by Stakeholder 81 Employee Diversity 86 Materiality Assessment 85 Giving Structure and Governance 87 Material Issues 85 External Initiatives 88 2020 Diversity of Governance Bodies 86 Associations Membership 90

Engagement Method by Stakeholder

COMMUNITIES

IMPORTANCE

• Our company succeeds when our communities succeed • Maintaining strong relationships with our communities gives us social license to operate • Our business is a key component of the economic success of our local communities • Our communities each face unique challenges

HOW WE ENGAGE KEY TOPICS

• Economic and charitable relationships • Air emissions • Employee-led fundraising • Economic impact • Plant tours • Community engagement • Community Advisory Councils • Sustainable jobs • Volunteerism • Water use and water quality • Media • Product donations

OUR RESPONSE

• Mobilizing our people, products and resources to address critical needs in the communities where our employees live and work • Ensuring that our Community Advisory Councils meet regularly and maintain open dialogue about community concerns and opportunities for collaboration and improvement • Proactively engaging with community stakeholders to address water-related issues within the watershed • Reducing our air emissions by: • Implementing efficient manufacturing technologies • Investing in energy efficiency improvements • Fuel switching • Operating our mills with nearly 75% renewable biomass residuals energy rather than fossil fuels

2020 GLOBAL CITIZENSHIP REPORT | 81 CUSTOMERS

IMPORTANCE

• Without our customers, we would not exist • Customer expectations and needs influence our product and service innovation • Changing technology and consumer demands present an opportunity for renewable, recyclable products to provide sustainable solutions

HOW WE ENGAGE KEY TOPICS

• Sales relationships • Special events • Air + GHG emissions • Operational efficiency • Regular site visits • Online communications • Certified fiber content • Recovered fiber content • Meetings • Onsite/forestry tours • Climate change • Waste reduction • Surveys • Life cycle impact

OUR RESPONSE

• Creating useful, sustainable and recyclable products that help customers achieve their objectives • Working with customers to meet sustainability objectives through technology and innovation collaborations • Having our subject-matter experts meet regularly to discuss product and service innovation • Measuring progress against our targets related to efficiency and energy consumption, GHG, water stewardship, fiber loss, waste and workplace safety • Establishing goals to purchase and use more third-party certified wood fiber and increase the recovery of corrugated packaging and paper — all to improve our watersheds and to grow our community involvement • Ensuring that our goals affect all areas of our value chain • Mapping our alignment and progress against UN SDGs • Actively engage and respond to surveys and questionnaires regarding our environmental impacts and GHG emissions

EMPLOYEES

IMPORTANCE

• International Paper is the most successful and competitive when our employees are safe, engaged and appreciated • Engaged employees drive significant and sustainable outcomes, and good leaders inspire colleagues to drive team success • Employee well-being and capabilities influence our operational performance and value creation

HOW WE ENGAGE KEY TOPICS

• Safety programs • Intranet sites • Diversity and inclusion • Safety • Safety Leadership Training • Presentations • Employee development • Global webcasts • Diversity and functional forums • Engagement surveys • Employee engagement • Team meetings • Employee training • Company-wide communications

OUR RESPONSE

• Looking out for our people each day to ensure everyone returns home safely • Achieving injury-free operations by providing safe work conditions, promoting accountability and responsibility and using a number of safety indicators to ensure safe work actions • Executing our LIFE (Life-Changing Injury and Fatality Elimination) initiative • Striving for a collaborative workplace that engages all employees • Providing the tools and opportunities for employees to develop and succeed • Measuring employee engagement with a formal third-party survey every two years, and creating team improvement plans based on employee feedback • Conducting diversity and inclusion training and hosting inclusion forums, mentoring boards and team-level courses.

2020 GLOBAL CITIZENSHIP REPORT | 82 GOVERNMENTS

IMPORTANCE

• Public policy and regulations created at national, regional and local levels impact our business, forests and communities

HOW WE ENGAGE KEY TOPICS

• Legislative meetings • Trade associations meetings • Health and safety • Transportation • Formal hearings • Policy-based organizations • Paper recycling • Trade and export collaboration and recovery • One-on-one meetings • Facility visits • Taxes and environmental policy

OUR RESPONSE

• Advocating at all levels of government, including policymakers and legislators, to inform and influence legislative and regulatory issues • Committing to meet or exceed legal requirements to uphold our high ethical standards and to do the right things, in the right ways, for the right reasons — all of the time • Educating policy makers on our commitment to sustainable forestry, third-party fiber certification, reduced emissions, responsible resource management and efficient use of renewable biomass and recycling

NON-GOVERNMENTAL ORGANIZATIONS

IMPORTANCE

• Non-Governmental Organizations (NGOs) update us on social and environmental impact issues so that we can work continuously to improve our performance • They encourage us to increase transparency and communication of our sustainability performance • NGOs provide opportunities for us to align our global citizenship strategy with other interested organizations • NGOs serve as a powerful partner to help accelerate positive sustainability outcomes

HOW WE ENGAGE KEY TOPICS

• External communications • Public-private partnerships and • Air + GHG Emissions • Hunger (food insecurity) engagement on select topics • InternationalPaper.com • Climate change • Recycling • Strategic partnerships and • Corporate email forms • Disaster relief • Sustainable forestry consultation on material issues • Participation in conferences • Education • Water stewardship and forums • Health and wellness

OUR RESPONSE

• Incorporating feedback in developing internal environmental and social programs

• Working continuously to reduce our global manufacturing emissions — including GHG, SO2, NOX and particulate matter — in order to improve our impact on the planet • Establishing strategic partnerships to help us identify areas where we can make the greatest impact in sustainability

2020 GLOBAL CITIZENSHIP REPORT | 83 SHAREHOLDERS

IMPORTANCE

• Our investors provide financial, institutional and various other types of support that enable International Paper to continue to thrive as a global business • Accountability to investors requires us to monitor both financial and non-financial performance and issues material to our business • Communicating performance to investors strengthens our reputation

HOW WE ENGAGE KEY TOPICS

• Annual Shareholders Meeting • Business strategies • Business strategies • Quarterly earnings • Financial returns • Financial returns conference calls • Financial stewardship • Financial stewardship • Regular calls and • Risk mitigation • Risk mitigation in-person meetings

OUR RESPONSE

• Ensuring we are doing our part to address environmental and social issues material to our business • Continually driving meaningful business results by setting goals and targets and monitoring the changing landscapes

SUPPLIERS

IMPORTANCE

• We view suppliers as an extension of our company and their responsibility and performance as a reflection of our own • Poor supplier performance limits our own capabilities for value creation and is a significant risk • We take a partnership approach to maintaining transparency with suppliers to promote responsible best practices throughout our global supply chains

HOW WE ENGAGE KEY TOPICS

• Supplier relationships • Requests for information • Environmental impact • Audits • Supplier scorecards • Governance practices • Onsite visits • Labor rights • Strategic meetings • Supplier assessments and partnerships

OUR RESPONSE

• Outlining our expectations for workplace standards and business practices of our suppliers and others who are within their supply chains with our Third Party Code of Conduct • Supporting our supply chain sustainability strategy with three complementary drivers: promoting transparency, enhancing risk and strengthening partnerships

2020 GLOBAL CITIZENSHIP REPORT | 84 Materiality Assessment Sustainability at International Paper goes beyond forests and encompasses our entire value chain — from fiber procurement, operations and products to our communities, employees and suppliers. Through internal and external analysis, we identify a broad range of relevant issues that inform our sustainability strategy. Determining materiality includes consideration of economic, environmental, social and governance matters that affect our ability to create value for stakeholders, now and in the future.

We have traditionally conducted a bi-annual materiality assessment by surveying stakeholders. As we began to develop our Vision 2030 goals in 2018, we shifted our approach to assessing materiality through more direct engagement and robust benchmarking with internal and external stakeholders.

All stakeholder groups — which include communities, customers, employees, government, non- governmental organizations, shareholders and suppliers — were represented in our assessment. Learn more about our Stakeholder Engagement.

We will continue to regularly engage stakeholders to ensure we are addressing emerging trends and new priorities.

Material Issues We mapped our stakeholders’ priority issues across our value chain, which helps us identify and address key impacts where they occur.

HEALTHY & ABUNDANT FORESTS

Deforestation Fiber sourcing & certification Forest ecosystem Land use rights

Sustainable forestry

SUSTAINABLE OPERATIONS

Energy consumption Renewable energy GHG emissions Air emissions

Water management Watershed stewardship Chemical use Waste management

Responsible sourcing practices Climate change Supplier diversity

RENEWABLE SOLUTIONS

Product design for New product innovation Recovered fiber & fiber efficiency Product end-of-use circular economy

Product material innovation Product stewardship

THRIVING PEOPLE & COMMUNITIES

Charitable donations Community engagement Compensation Diversity & equal opportunity

Employee engagement Employee volunteerism Human rights Indirect economic value

Public safety Training & development Worker health & safety Labor relations

Talent attraction & retention Product safety Responsible marketing Stakeholder engagement

Stakeholder responsiveness

RESPONSIBLE BUSINESS PRACTICES

Business ethics, Government relations & public Transparency & disclosure Cyber security bribery & corruption policy advocacy

Financial performance

2020 GLOBAL CITIZENSHIP REPORT | 85 2020 Diversity of Governance Bodies

MALE FEMALE

Board of Directors* 73% 27%

Senior Lead Team** 83% 17%

Officers*** 83% 17%

* 11 members, including Mark Sutton ** 12 members, including Mark Sutton *** 40 appointed members, excludes SLT

UNDER 30 31-50 OVER 51

Board of Directors 0% 0% 100%

Senior Lead Team 0% 8% 92%

Officers 0% 35% 65%

Employee Diversity

EMPLOYEES 2020 – REGION BY GENDER

MALE FEMALE TOTAL

North America 83% 17% 33,658

EMEA 76% 24% 9,869

South America 82% 18% 5,019

Asia 32% 68% 140

EMPLOYEES 2020 – REGION BY AGE

UNDER 31 31-40 41-50 51-60 OVER 61

North America 16% 22% 22% 27% 13%

EMEA 11% 26% 30% 27% 6%

South America 1% 20% 34% 29% 16%

Asia 16% 39% 32% 11% 2%

2020 GLOBAL CITIZENSHIP REPORT | 86 NEW HIRES IN 2020 – REGION BY GENDER

MALE FEMALE

North America 83% 17%

EMEA 62% 38%

South America 69% 31%

Asia 0% 100%

EMPLOYEE TURNOVER IN 2020 – REGION BY GENDER

MALE FEMALE

North America 14% 13%

EMEA 4% 4%

South America 11% 14%

Asia 0% 1%

Forty-three percent of our employees have worked at International Paper for more than 10 years.

Giving Structure and Governance

ORGANIZATION ESTABLISHED GOVERNANCE FUNDING

Instituto AIPI (Brazil) 2007 International Paper Leaders Annual company contributions

The Instituto AIPI (formerly known as Instituto International Paper) is a Public Interest Civil Society Organization, responsible for developing, coordinating and executing initiatives and programs related to global citizenship efforts in Brazil. IIP was created in late 2007 to develop, coordinate and execute initiatives and programs related to corporate social responsibility at International Paper Brazil.

Russia Social Council 2001 International Paper Officers Company funded (Russia) and Non-officer Employees

Based in Svetogorsk, this council was established in 2001 and provides local community support in the target areas of healthcare, education, sport and cultural activities. The council seeks to provide long-term benefits for the people in the community by building strategic partnerships with local non-profit organizations, while supporting the retention of the local workforce and key talent.

Employee Relief Fund (ERF) 2001 International Paper Officers Employee donations and and Non-officer Employees company matching contributions

When a crisis occurs, our employees rise to the occasion to help their fellow workers and communities. Our Employee Relief Fund was created in 2001 to support International Paper employees who are impacted by a natural disaster or personal emergency by providing cash for basic needs such as food, medicine, clothing and shelter.

2020 GLOBAL CITIZENSHIP REPORT | 87 ORGANIZATION ESTABLISHED GOVERNANCE FUNDING

International Paper Kwidzyn 1994 International Paper Leaders Annual company and Charity Foundation (Poland) employee contributions

The International Paper Kwidzyn Charity Foundation was established in 1994 based on the International Paper Foundation model in the U.S. The foundation raises its funds from voluntary donations from employees and a fixed donation from the company. Funds provide assistance to the victims of disasters, individuals suffering from a variety of disabilities and people suffering from poverty, as well as provide support for sports activities and financing school equipment.

IP Foundation 1952 International Paper Leaders Company endowments (United States)

Established in 1952, the foundation annually provides millions in grants to 501(c)(3) non-profit organizations to address critical needs in the communities where our employees live and work. In 2020, the International Paper Foundation contributed $4 million to address critical community needs in the U.S.

International Paper Corp. 1898 International Paper Officers Company funded and Leaders

See Our Company

External Initiatives We are committed to excellence in environmental, health and safety practices and in overall performance. Below is a list of entities/initiatives to which we subscribe or endorse.

ENTITY OR INITIATIVE PURPOSE/COMMITMENT

826 National We support the largest youth writing network in the U.S., helping fund 826 National free writing programs that serve more than 38,000 under-resourced students ages six to 18 in eight cities and an additional 46,000 students nationwide through 826 Digital.

American Forest Foundation We participate in this joint initiative focused on the Coastal Carolinas Plain to educate Carolinas Working Forest and engage family woodland owners in sustainable forestry, forest certification, Conservation Collaborative the enhancement of habitat for at-risk species and the conservation of bottomland hardwood forests.

American Forest Foundation American Forest Foundation Family Forest Carbon Program is a program that empowers Family Forest Carbon Program family forest owners to actively manage and care for their forests to sequester and store in coordination with The Nature more carbon, through a carbon market. Conservancy

American Red Cross Annual Our commitment builds upon our company’s long-time support of American Red Cross Disaster Giving Program disaster relief programs helping more than 100 communities across the country.

Arbor Day Foundation Community The Community Tree Recovery Program promotes community resilience by helping Tree Recovery Program and Time homeowners recover the beauty and benefit of trees after a natural disaster, as well for Trees Initiative as helping to restore forestlands impacted by natural disasters. The Time for Trees initiative is a commitment to plant 100 million trees in forests and communities worldwide by 2022.

CDP We report annually to CDP questionnaires on climate, forests and water.

Celebrate Planet Earth Our support helps distribute butterfly kits and sunflower kits to kindergarten through third grade in classrooms across the U.S.

The Circular Economy Accelerator An initiative of The Recycling Partnership, the Circular Economy Accelerator™ aims to advocate for sustainable funding; inspire policy to incentivize recycling over disposal; and develop new models to expedite public-private solutions for circular systems.

2020 GLOBAL CITIZENSHIP REPORT | 88 ENTITY OR INITIATIVE PURPOSE/COMMITMENT

Coaching For Literacy We are working together to support the Fight for Literacy Games initiative benefiting school children from kindergarten through third grade. The Fight for Literacy Games empower NCAA basketball coaches, their teams and fans to participate in literacy awareness efforts, volunteer work and fundraising activities.

Environmental Protection Agency This is a U.S. public-private initiative to reduce GHG and air pollution created by freight (EPA) SmartWay® transportation.

Feeding America® Through Feeding America, the U.S.’s largest domestic hunger-relief organization, we help feed the hungry and support its national disaster relief efforts.

Forestland Stewards National Fish and Wildlife Foundation and International Paper created Forestland Stewards in 2013.

Natural Capital Coalition We participate in a global multi-stakeholder collaboration that brings together leading global initiatives and organizations to harmonize approaches to natural capital.

National Conference of The NCSL represents the legislatures in the states, territories and commonwealths of the State Legislators (NCSL) U.S. Its mission is to advance the effectiveness, independence and integrity of legislatures — as well as to foster interstate cooperation and facilitate the exchange of information among legislatures. We support the work of NCSL through our contribution to the NCSL Foundation.

North American Forest Partnership The initiative was formed by a diverse community of forest stewards. It aims to build #ForestProud initiative trust and support in order to manage, harvest, conserve and play in North America’s forests in ways that address key societal challenges.

Reading is Fundamental We support Reading is Fundamental’s Books for Ownership program, which gives age-appropriate books to first-graders in school districts where our employees live and work — with the goal of building their own home libraries.

The Global FoodBanking Network We are working with The Global FoodBanking Network (GFN) to expand child-focused programming to feed food-insecure and undernourished children in Brazil, Canada, Poland and Spain.

The Nature Conservancy (TNC)® TNC is a collaborative, science-based non-governmental organization working to conserve the lands and waters on which all life depends. Our support makes several of TNC’s forest sustainability, water stewardship and responsible sourcing projects possible — including a global project focused on reduced-impact logging for carbon (RIL-C) in Indonesia and Gabon.

The Recycling Partnership One of more than 40 leading companies in the program, we are funding partners of this rapidly growing national non-profit. The Recycling Partnership leverages corporate investment to transform recycling for good in hundreds of communities across the country.

Third Way Third Way is a national think tank that champions modern center-left ideas. Its work is grounded in the mainstream U.S. values of opportunity, freedom and security.

United Way We annually conduct more than 80 local United Way campaigns in the U.S. and Canada, enabling employees to donate to their communities in a meaningful way.

World Wildlife Fund (WWF) We participate in the Global Forest & Trade Network, which is focused on eliminating — Global Forest & Trade Network illegal logging and driving improvements in environmentally and socially responsible forest management. We also support WWF’s initiative to advance the concept of science-based targets for forests. In addition, our support is enabling a restoration project in the Mogi Guaçu River basin in Brazil.

2020 GLOBAL CITIZENSHIP REPORT | 89 Associations Membership These memberships provide platforms for the company to learn and share information about sustainability and related issues. We consider membership and engagement with the following entities as strategically critical. Beyond membership, we have indicated our level of participation.

PARTICIPATION AT THE PARTICIPATION IN PROJECTS ORGANIZATION DESCRIPTION GOVERNANCE LEVEL OR COMMITTEES

American Forest and National trade association of the Paper Association forest products industry that advances public policies that promote a strong and sustainable U.S. forest products industry

Association of Russian Pulp and Non-commercial association Paper Companies established in 1999 by the Russian pulp and paper enterprises and institutes

Blue Green Alliance Unites the U.S.’s largest labor unions and its most influential environmental organizations to identify ways today’s environmental challenges can create and maintain quality jobs and build a stronger, fairer economy

Brazil-U.S. Business Council Part of the U.S. Chamber of Commerce, an advocacy organization for U.S. and Brazilian companies with interest in the economic relationship and in conducting business in both markets

Brazilian Forest Brazilian third-party forest Certification Programme certification system that issues Programme for the Endorsement of Forest Certification (PEFC)

Brazilian Industry of Trees Industry association in Brazil (Industria Brasileira de Arvores) responsible for the planted tree production chain from the field to the industry

Business Roundtable Association of chief executive officers of leading U.S. companies working to promote sound public policy and a thriving U.S. economy

Confederation of European Nonprofit organization that represents Paper Industries the paper industry with EU institutions

Corporate Eco Forum An invitation-only network of Global 500 executives driving innovation in corporate sustainability

Envelope Manufacturers A non-profit that promotes the Association (EMA) value of paper-based communications and, in particular, envelopes and printed products

Fibre Box Association Trade association representing North American corrugated packaging manufacturers

Forest Resources Association Promotes the interests of forest products industry members in the economical, efficient and sustainable use of forest resources

2020 GLOBAL CITIZENSHIP REPORT | 90 PARTICIPATION AT THE PARTICIPATION IN PROJECTS ORGANIZATION DESCRIPTION GOVERNANCE LEVEL OR COMMITTEES

Forest Stewardship Council® Promotes environmentally sound, socially beneficial and economically prosperous management of the world’s forests

International Conservation Promotes the projection of Caucus Foundation U.S. leadership for international conservation worldwide

National Association The largest manufacturing industrial of Manufacturers trade association in the U.S., representing 11,000 small and large manufacturing companies in every industrial sector and in all 50 states

National Council for Air Independent, non-profit research and Stream Improvement institute that focuses on environmental and sustainability topics relevant to forest management and the manufacture of forest products

National Fish and Works with both the public and private Wildlife Foundation sectors to protect and restore fish, wildlife, plants and habitats

National Industrial The largest manufacturing industrial Transportation League trade association in the U.S., representing the voice of the nation’s shippers in legislative and regulatory advocacy matters pertaining to truck, rail, ports and infrastructure

ORCHSE Strategies, LLC Premier global family of health, safety and environmental networks for industry leaders

Paper and Packaging Board A commodity checkoff program overseen by the U.S. Department of Agriculture (USDA), overseeing the work of the “Paper & Packaging – How Life Unfolds” campaign designed to increase demand for paper and paper-based products

Programme for International non-profit, the Endorsement non-governmental organization of Forest Certification dedicated to promoting sustainable forest management

Pulp and Paper Safety Non-profit international organization Association devoted to the continuous improvement of safety throughout all aspects of the paper industry

Sustainable Forestry Initiative® Promotes sustainable forest management, improved forestry practices and responsible purchasing of forest products

Sustainable Packaging A membership-based collaborative Coalition (SPC) with the mission of bringing packaging sustainability stakeholders together to improve packaging systems and lend an authoritative voice on issues related to packaging sustainability

2020 GLOBAL CITIZENSHIP REPORT | 91 PARTICIPATION AT THE PARTICIPATION IN PROJECTS ORGANIZATION DESCRIPTION GOVERNANCE LEVEL OR COMMITTEES

Two Sides, North America Promotes the sustainability of the and Europe graphic communications industry and dispels common environmental misconceptions by providing users with verifiable information

U.S.-China Business Council A private, nonpartisan, nonprofit (USCBC) organization with the mission of expanding the U.S.-China commercial relationship to the benefit of its membership and, more broadly, the U.S. economy

U.S.-Poland Business Council An organization that strives to expand U.S.-Poland trade and investment to a wide variety of business sectors

U.S.-Russia Business Council A Washington, D.C.-based trade (USRBC) association with the mission to expand the U.S.-Russian commercial relationship

U.S.-Turkey Business Council Part of the U.S. Chamber of Commerce, a business advocacy organization established to expand the bilateral commercial relationship and increase trade and investment between the U.S. and Turkey

Women’s Business Enterprise A non-profit that advocates for women- National Council owned businesses as suppliers of U.S. corporations

World Business Council for CEO-led organization of forward- Sustainable Development thinking companies that works with the global business community to create a sustainable future for business, society and the environment

World Environment Center Global non-profit, non-advocacy organization that advances sustainable development through the business practices of member companies and other stakeholders

2020 GLOBAL CITIZENSHIP REPORT | 92 Glossary

ASSURANCE CDP The outcome of an independent verification Formerly known as the Carbon Disclosure Project, process usually based on specific assurance a non-profit organization to which International standards or frameworks. The term is often used Paper and other companies report their GHG and interchangeably with the term “verification.” water use.

BIOECONOMY CO2e, CARBON DIOXIDE EQUIVALENT An industry and economic model that uses A measure used to compare the emissions from renewable biological resources from land and different GHG in terms of their warming potential sea — such as crops, forest, fish, animals and relative to carbon dioxide. microorganisms — to produce food, materials and energy. CHAIN OF CUSTODY Chain of Custody Certification for wood/fiber BIOLOGICAL OXYGEN DEMAND (BOD) material and products. Chain of Custody is an A measure of water quality. Specifically, information trail about the path taken by products the amount of oxygen that bacteria will from the forest or, in the case of recycled materials, consume while decomposing biologically from the reclamation site to the consumer, available organic matter. including each stage of processing, transformation, manufacturing and distribution where progress to BIOMASS RESIDUALS ENERGY the next stage of the supply chain involves a Fuel that is developed from organic materials, change of ownership. a renewable and sustainable source of energy used to create electricity or other forms of power. CIRCULAR ECONOMY An economic system in which products and BRITISH THERMAL UNITS (BTU) services are traded in closed loops or cycles. The amount of heat energy needed to raise A circular economy is regenerative by design, the temperature of one pound of water by allowing for the remanufacturing and recycling one degree Fahrenheit. of products and materials.

THE CALIFORNIA TRANSPARENCY CLIMATE CHANGE IN SUPPLY CHAINS ACT 2010 Long-term changes in global temperatures A U.S. law of the state of California that requires attributed directly or indirectly to human activity large retailers and manufacturers doing business that alters the composition of the global in California to disclose on their websites their atmosphere and which is in addition to natural efforts to eradicate slavery and human trafficking climate variability observed over comparable time from direct supply chains — whether in the U.S. periods. Global warming is one aspect of or overseas. climate change.

CARBON NEUTRAL COMMUNITY ENGAGEMENT A process where there is no net release of carbon A voluntary action or contribution by International dioxide. For example, growing biomass takes Paper, beyond the scope of our normal commercial carbon dioxide out of the atmosphere, while operations, intended to strengthen the burning it releases the gas again. The process communities in ways that are sustainable. would be carbon neutral if the amount taken out and the amount released were identical over a CONTAINERBOARD certain timeframe. Paperboard specially manufactured for the production of corrugated board. The term encompasses both linerboard and corrugating medium, the two types of paper that make up corrugated board.

2020 GLOBAL CITIZENSHIP REPORT | 93 DIRECT (SCOPE 1) EMISSIONS FAIR LABOR STANDARDS ACT (FLSA) All GHG emissions from sources that are directly The U.S. federal law known as the Fair Labor controlled by International Paper. Standards Act (FLSA) establishes, among other things, the federal minimum wage and hour EGRID requirements for employee work time and The Emissions & Generation Resource Integrated eligibility for overtime pay for certain types of Database is a comprehensive source of data on the employees. Under the FLSA, employees are environmental characteristics of almost all electric divided into two groups: exempt employees and power generated in the U.S. non-exempt employees. Exempt employees are exempt from the time-keeping rules and are not EHS eligible for overtime pay under the FLSA. Environment, Health and Safety. International Non-exempt employees are entitled to overtime Paper has a global EHS department that identifies pay and are subject to the time-keeping rules significant environmental impacts, sets standards, of the FLSA. The FLSA is enforced by the U.S. manages audits and assurance programs and Department of Labor. recommends targets to management. FLUFF PULP EMPLOYMENT CLASSIFICATIONS A chemical pulp that is usually made of bleached — U.S. cellulose fiber obtained from wood that has long fibers. This pulp is used as the absorbent core in Exempt Employee: products like baby diapers, sanitary pads and An employee who is classified as exempt under incontinence pads. the Fair Labor Standards Act and does not have to be paid overtime when they work more than FOSSIL FUELS 40 hours in a workweek. The three major general Solid, liquid or gaseous fuels formed in the ground exemptions relate to executives, administrative over millions of years by chemical and physical and professional employees and are based on changes in plant and animal residues under high actual job duties and responsibilities. temperature and pressure (i.e., gas, oil, coal, peat and lignite). Hourly Employee: An employee who is paid by the hour for the GLOBAL REPORTING INITIATIVE (GRI) number of hours he or she works per week up A multi-stakeholder process and independent to 40 hours at a determined rate. Per federal law, institution whose mission is to develop and hourly workers are entitled to overtime pay for disseminate globally applicable sustainability hours worked over 40 hours per work week. reporting guidelines.

Nonexempt Employee: GREENHOUSE GAS (GHG) An employee classified as nonexempt is entitled A gas in the atmosphere that absorbs infrared to overtime pay under the Fair Labor Standards Act radiation, traps heat in the atmosphere and at a rate of one and one-half the employee’s contributes to the greenhouse effect. regular rate of pay for each hour worked in excess of 40 hours per week. INDIRECT (SCOPE 2 & 3) EMISSIONS ENERGY EFFICIENCY Emissions that result from the activities of International Paper, but are generated at sources Using less energy to provide the same outcome, owned or controlled by another organization. often at a lower cost and with reduced Scope 2 emissions refer to GHG emissions from environmental impact. the generation of electricity, heat or steam that is imported and consumed by International Paper. EU TIMBER REGULATION Scope 3 emissions are all other indirect emissions The EU Timber Regulation helps to reduce illegal that occur in our value chain (e.g., transportation of logging by ensuring that no illegal timber or timber our products). products can be sold in the European Union (EU). It prohibits operators in Europe from placing INTERNATIONAL PAPER APPM LIMITED illegally harvested timber and products derived Commonly referred to as IP India. In 2011, from timber on the EU market. International Paper established a presence in India by acquiring 75% shareholding in International Paper APPM Limited (IP APPM), formerly known as The Andhra Pradesh Paper Mills Limited.

2020 GLOBAL CITIZENSHIP REPORT | 94 THE IP WAY NOX We do the right things, in the right ways, for the A generic term for the mono-nitrogen oxides NO right reasons, all of the time — this is The IP Way. and NO2 (nitric oxide and nitrogen dioxide). NOX

form when fuel is burned. In the atmosphere, NOX THE IP WAY FORWARD can contribute to the formation of photochemical Our strategic framework to pursue our vision to be ozone (smog) and have health consequences. among the most successful, sustainable and responsible companies in the world. The IP Way OLD CORRUGATED CONTAINERS (OCC) Forward is how we go beyond just doing the right Recovered corrugated boxes that can be used to things; it’s how we create value for all stakeholders make recycled containerboard and other products. for generations to come. OSHA LIFE The Occupational Safety and Health Administration An International Paper safety initiative that is an is a federal agency of the U.S. that regulates acronym that stands for Life-changing Injury and workplace safety and health. Fatality Elimination. Our LIFE program is designed to eliminate serious, life-changing injuries PAC and fatalities. Political Action Committee. A group or committee formed to financially support political candidates LOST WORK DAY INCIDENTS for ballot initiatives or legislation in the U.S. A work-related injury where the injured employee cannot return to work on their next scheduled work PAPERBOARD day, due to the nature and/or severity of the injury. Paper to which a coating has been applied on one Only regularly scheduled workdays are measured or both sides, using a mix of clay or carbonates as lost days. and latex to create a high quality printing surface.

MATERIAL ASPECTS PARIS CLIMATE AGREEMENT Issues that reflect the organization’s significant (French: Accord de Paris) economic, environmental and social impacts or An agreement within the United Nations that would substantially influence the assessments Framework Convention on Climate Change and decisions of stakeholders. (UNFCCC) dealing with GHG emissions mitigation, adaptation and finance starting in the year 2020. MATERIALITY ANALYSIS An analysis that scans, identifies and reviews PARTICULATE MATTER (PM) sustainability issues that are of the highest concern Mixture of solid particles and liquid droplets found to our stakeholders and that could significantly in the air. Examples include dust, dirt, soot and affect our company’s ability to execute its smoke. They have impacts on climate and business strategy. precipitation that adversely affect human health. NATURAL CAPITAL PROTOCOL PRECAUTIONARY PRINCIPLE A standardized framework that offers a The approach whereby any possible risk associated comprehensive approach to identify, measure with the introduction of a new technology or and value our impacts and dependencies on innovation is avoided, until a full understanding natural resources. of its impact on health, environment and other parameters is available. We apply a risk-based NON-GOVERNMENTAL ORGANIZATION approach to help prevent negative outcomes. (NGO) A not-for-profit group, principally independent PRODUCT STEWARDSHIP from government, which is organized on a local, The responsible management of the health, national or international level. safety and environmental aspects of a product throughout all stages of its life cycle — raw materials, design, production, sale, usage and end-of-life — to prevent or minimize negative impacts and maximize value.

2020 GLOBAL CITIZENSHIP REPORT | 95 REDUCED IMPACT LOGGING FOR TURNOVER CLIMATE — MITIGATION (RIL-C) The percentage of employees who have voluntarily A set of climate-smart forestry practices together or involuntarily left their employment during the with a practical methodology developed by The reporting year. Nature Conservancy to measure and verify reductions in GHG emissions. This methodology UK MODERN SLAVERY ACT strengthens the link between good forest An act of the Parliament of the United Kingdom management and forest protection by: that requires commercial organizations to produce • Clarifying the best practices for maximizing a statement outlining actions taken to combat living carbon in forests modern slavery in their supply chains. This applies to commercial organizations supplying either • Allowing forest managers to access incentives goods or services, carrying on a business or part of for climate mitigation a business in the UK, and having an annual turnover of £36 million. RENEWABLE RESOURCES Any natural resource that can replenish itself UNITED NATIONS DECLARATION naturally over time, such as wood or solar energy. OF HUMAN RIGHTS A common standard of fundamental human rights SCIENCE-BASED TARGETS (SBT) that are universally protected for all peoples and Targets adopted by companies to reduce GHG all nations, proclaimed by the United Nations emissions that align with what the latest climate General Assembly in 1948. science says is necessary to meet the goals of The Paris Agreement — to limit global warming to U.S. FOREIGN CORRUPT well-below 2°C above pre-industrial levels and PRACTICES ACT pursue efforts to limit warming to 1.5°C. A U.S. federal law that addresses accounting transparency requirements and the bribery of SO2 foreign officials. Sulfur dioxide is a gas formed when fuels that contain sulfur, such as oil and coal, are burned. U.S. LACEY ACT Sulfur dioxide contributes to the acidification of A U.S. conservation law that prohibits trade in soil and water, and often has a strong smell. wildlife, fish and plants that have been illegally taken, possessed, transported or sold. STAKEHOLDERS Individuals or groups that affect or are affected VALUE CHAIN by the activities of a company. Our suppliers (and potentially their suppliers), our operations, our distribution channels and our SUSTAINABILITY customers, who are the end-users of our products. A business model that creates value consistent Our supply chain is a subset of this. with the long-term preservation and enhancement of social, financial and natural capital. Meeting the VISION 2020 GOALS needs of the present without compromising the Our 12 voluntary goals with a 2010 baseline, aimed ability of future generations to meet their needs. at improving our impact on people and the planet. The goals concluded on December 31, 2020. SUSTAINABLE DEVELOPMENT GOALS (SDGs) VISION 2030 GOALS A set of 17 global targets established by the The next generation of our goals which United Nations in 2015 as a universal call to action demonstrate our commitment to building a better to end poverty, protect the planet and ensure that future for people, the planet and our company. all people enjoy peace and prosperity by 2030. Vision 2030 consists of four goals and eight corresponding targets that enable us to measure TIER ONE SUPPLIER our progress starting in January 2021. A Tier 1 supplier diversity ‘spend’ represents the direct relationship between a company and its diverse supplier.

2020 GLOBAL CITIZENSHIP REPORT | 96 GRI Content Index

This GRI Content Index is provided to assist readers in understanding how our report aligns with the GRI Sustainability Reporting Standards. This index includes Core indicators as well as a number of additional indicators that we have determined are relevant to our business. This report follows the GRI Standards first updated in 2016. We continue to evaluate issues that are material to our company and expand our disclosures. We report on an annual basis. Our previous report was published in July 2020. Financial information and disclosures can be found in our 2020 Annual Performance Summary.

All data are reported as of Dec. 31, 2020, unless otherwise stated. Data is included from all global operations. We do not collect data on any joint venture in which we do not have a controlling interest. In some cases, our 2010 baseline data, as well as other historical data, have been restated to reflect acquisitions and joint ventures where International Paper has a controlling interest. Where appropriate, we report historical data for comparative purposes, as well as data normalized to metric tons of production for a given year. We do not provide external assurance. Data parameters and calculation methods use a combination of international, government, industry and company standards and protocols. International Paper made reasonable effort to ensure the information presented is accurate and complete.

We welcome suggestions and encourage open dialogue about opportunities to improve. Please contact us to provide feedback or to request more information about topics covered in this report.

General and Topic-Specific Disclosures

2020 GLOBAL 2020 ANNUAL DISCLOSURE DESCRIPTION CITIZENSHIP PERFORMANCE REPORT SUMMARY Organizational Profile

102-1 Name of the Organization 1

102-2 Activities, Brands, Products and Services 8, 52

102-3 Location of Headquarters 9

102-4 Location of Operations 9

102-5 Ownership and Legal Form 13, 107

102-6 Markets Served 9

102-7 Scale of the Organization 2

102-8 Employees and Other Workers 61

102-9 Supply Chain 29

102-10 Significant Changes to Organization and Supply Chain 66, 74

102-11 Precautionary Approach or Principle 76

102-12 External Initiatives 88

102-13 Membership of Associations 90

Strategy

102-14 Statement from Senior Decision-maker 3

102-15 Description of Key Impacts, Risks and Opportunities 11

Ethics and Integrity

102-16 Values, Principles, Standards and Norms of Behavior 73, 76

102-17 Mechanisms for Advice and Concerns About Ethics 78

Governance

102-18 Governance Structure 74

102-19 Delegating Authority 73

102-20 Executive-level Responsibility for Economic, Environmental and Social Topics 73

2020 GLOBAL CITIZENSHIP REPORT | 97 2020 GLOBAL 2020 ANNUAL DISCLOSURE DESCRIPTION CITIZENSHIP PERFORMANCE REPORT SUMMARY Stakeholder Engagement

102-40 List of Stakeholder Groups 15, 81

102-41 Collective Bargaining Agreements 61

102-42 Identifying and Selecting Stakeholders 15

102-43 Approach to Stakeholder Engagement 15, 81

102-44 Key Topics and Concerns Raised 81

Reporting Practice

102-45 Entities Included in the Consolidated Financial Statements 97 16

102-46 Defining Report Content and Topic Boundaries 10

102-47 List of Material Topics 85

YOY data reflects changes related to acquisitions and 102-48 Restatements of Information divestments. 38, 40, 42, 43, 45, 46

102-49 Changes in Reporting 97

102-50 Reporting Period 97

102-51 Date of Most Recent Report 97

102-52 Reporting Cycle 97

102-53 Contact Point for Questions Regarding the Report 97

102-54 Claims of Reporting in Accordance with the GRI Standards 1

102-55 GRI Content Index 97

102-56 External Assurance 97

Economic

103/201 Economic Performance Management Approach 3

201-1 Direct Economic Value Generated and Distributed 6, 10

103/205 Anti-corruption Management Approach 77

205-2 Communication and Training on Anti-corruption Policies and Procedures 29, 77

Environmental

103/301 Materials Management Approach 18, 55

301-2 Recycled Input Materials Used 55

103/302 Energy Management Approach 38

302-3 Energy Intensity 38

302-4 Reduction of Energy Consumption 38

103/303 Water and Effluents Management Approach 43

303-1 Interactions with Water as a Shared Resource 43

303-2 Management of Water Discharge-related Impacts 45

303-3 Water Withdrawal 43

303-4 Water Discharge 43

303-5 Water Consumption 43

103/305 Emissions Management Approach 39

305-1 Direct (Scope 1) GHG Emissions 40

305-2 Energy Indirect (Scope 2) GHG Emissions 40

305-5 Reduction of GHG Emissions 40

305-7 Nitrogen Oxides (NOX), Sulfur Oxides (SOX), and Other Significant Air Emissions 42 103/306 Waste Management Approach 46

306-1 Waste Generation and Significant Waste-related Impacts 46

2020 GLOBAL CITIZENSHIP REPORT | 98 2020 GLOBAL 2020 ANNUAL DISCLOSURE DESCRIPTION CITIZENSHIP PERFORMANCE REPORT SUMMARY 306-2 Management of Significant Waste-related Impacts 45, 46, 54

306-3 Waste Generated 46

306-4 Waste Diverted from Disposal 46, 56

306-5 Waste Directed to Disposal 46

103/307 Environmental Compliance Management Approach 78

307-1 Non-Compliance with Environmental Laws and Regulations 78 83

Social

103/401 Employment Management Approach 61

401-1 New Employee Hires and Employee Turnover 87

401-2 Benefits Provided to Full-time Employees 68

103/403 Occupational Health and Safety Management Approach 62

403-1 Occupational Health and Safety Management System 62

403-9 Work-related Injuries 64

103/404 Training and Education Management Approach 68

404-2 Programs for Upgrading Employee Skills and Transition Assistance Programs 68

404-3 Percentage of Employees Receiving Regular Performance and Career Development Reviews 70

103/405 Diversity and Equal Opportunity Management Approach 65

405-1 Diversity of Governance Bodies and Employees 86

103/412 Human Rights Assessment Management Approach 30 Significant Investment Agreements and Contracts that Include Human Rights Clauses or that 412-3 30 Underwent Human Rights Screening 103/413 Local Communities Management Approach 70

413-1 Operations with Local Community Engagement, Impact Assessments and Development Programs 70, 87

103/414 Supplier Social Assessment Management Approach 29, 33

414-1 New Suppliers Screened Using Social Criteria 29

103/415 Public Policy Management Approach 79

415-1 Political Contributions 80

103/417 Marketing and Labeling Management Approach 52

417-2 Incidents of Non-Compliance Concerning Product and Service Information and Labeling 52

2020 GLOBAL CITIZENSHIP REPORT | 99 OUR GLOBAL TEAM IS COMMITTED TO:

Investing in people and strengthening our communities

Using all resources responsibly and efficiently

Ensuring our businesses are safe, successful and sustainable for generations to come

2020 GLOBAL CITIZENSHIP REPORT | 100 ©2021 International Paper Company. All rights reserved. Accent, Ballet, Chamex, Hammermill, International Paper logo, POL, PRO-DESIGN, REY, Springhill and SvetoCopy are registered trademarks of International Paper Company or its affiliates.

From FORTUNE Magazine, February 2021, ©2021 Fortune Media IP Limited. FORTUNE and The World’s Most Admired Companies are registered trademarks of Fortune Media IP Limited and are used under license. FORTUNE and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of, International Paper Company. “World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC. FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that International Paper has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products. The Wall Street Journal mark is reprinted with permission of the Wall Street Journal. All product names, logos and brands are property of their respective owners.

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